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skad [1K]
3 years ago
11

New Age Computers manufactures and sells pagers and radio paging systems which include a 180 day warranty on product defects. It

also sells an extended warranty which provides an additional two years of protection. On May 10, it sold a paging system for $4,500 and an extended warranty for another $1,400. The journal entry to record this transaction would include
a. a credit to Service Revenue of $5,050.

b. a credit to Service Revenue of $1,200.

c. a credit to Sales of $3,850 and a credit to Service Revenue of $1,200

d. a credit to Unearned Service Revenue of $1,200
Business
1 answer:
viktelen [127]3 years ago
5 0

Answer:

D. credit to Unearned Warranty Revenue of $1,400

Explanation:

Unearned extended warranty revenue can be defined as the way in unearned revenues is reflected in accrued liabilities in the balance sheets which in turn lead to the revenue from separately priced as well as self-insured service contracts to be deferred at the point of sale.

Therefore the journal entry to record this transaction would include:

credit to Unearned Warranty Revenue of $1,400

You might be interested in
Which of the following is a condition in the general environment that if exploited effectively helps a company reaches strategic
valentina_108 [34]

Answer:

The correct answer to the following question will be "Opportunity".

Explanation:

  • A market opportunity to sell or contract any commodity, facility, facilities, etc. that will allow the buyer-licensee to set up a business.
  • The licensor of a marketing opportunity usually announces that he or she will protect or support the purchaser in finding a suitable destination or deliver the commodity to the cardholder-licensee.

Therefore, Opportunity is the right answer.

5 0
3 years ago
Carmex's first efforts in marketing research had the research objective of figuring out who it was as a company and what the Car
umka2103 [35]

Answer: Definition the problem.

Explanation:

In trying to solve a problem, the first and the most basic step to take is to identify or define the problem, this stage involves determining the circumstances and situation as it helps one to be focused and pay attention to what the real problem is.

It is the first step and the most important, although it is most times difficult.

Defining the problem must answer the question "why", "who", "where","what", "how" and "when".

Defining the problem helps one to gain control over the situation.

6 0
2 years ago
Information related to Sheridan Company:
Vladimir [108]

Answer:

Oct 1.

Cash $19,900 (debit)

Common Stock $19,900 (credit)

Oct 3.

Office Furniture $2,100 (debit)

Trade Payable $2,100 (credit)

Oct 6.

Trade Receivable:  N. Fennig $3,250 (debit)

Revenue $3,250 (credit)

Oct 27.

Trade Payable $900 (debit)

Cash $900 (credit)

Oct 30.

Salary Expense : Administrative Assistant $2,650 (debit)

Cash $2,650 (credit)

Explanation:

In all non-cash entries remember to observe the <em>Accrual</em> or <em>Matching</em> Principle.Thus, transactions must be recorded when they accrue or incur not when they are paid.

7 0
3 years ago
Job embeddedness refers to Select one: a. increasing the number and variety of tasks within a job. b. a temporary switching of j
icang [17]

Answer:

c. The array of forces attaching people to their jobs.

Explanation:

Job embeddedness is a study of employee retention. It focuses on all the forces and factors that retain an employee on the job. The theory identifies critical elements that determine a connection between an employee and their job.

These elements are Fit, Links and Sacrifice.

Fit is how the employee perceives their own compatibility with the job. Links are the number of connections the employee has in the working community. Sacrifice is the loss of potential benefits, in monetary terms or psychological, when the connections with the social community are broken.

Hope that helps.

4 0
3 years ago
The next dividend payment by Savitz, Inc., will be $1.68 per share. The dividends are anticipated to maintain a growth rate of 6
olasank [31]

Answer:

The answer is 11.25%

Explanation:

Solution

Given that:

The next step to take is to calculate the required rate of return which is shown below:

The required rate = D₁/P₀₀ + g

Thus,

$1.68/$32 + 0.06%

=0.0525 + 0.06

=0.1125 or 11.25%

Therefore, the required rate of return is 11.25%

7 0
2 years ago
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