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Luba_88 [7]
3 years ago
7

Butcher Co. sold 10,000 toys in Year4 for $20 each. The company expects that 5% of the toys will be returned under warranty for

a refund of the sales price in the 2-year warranty period. There were $6,000 of warranty obligations paid in cash during Year4. What is Butcher's warranty expense for Year4?
Business
1 answer:
algol133 years ago
4 0

Answer:

Butcher's warranty expense for Year 4 is $10,000

Explanation:

Since in the question, it is given that 5% of the toys are returned, and the warranty expenses should be charged on the replacement service or repair service. Even, the question has said the same.

So, the warranty expense computation is shown below:

= Sale units of toys × selling price per toy × returned percentage

= 10,000 toys × $20 × 5%

= $10,000

The warranty obligation part is irrelevant. Thus, we don't consider in the computation part. Therefore, it is ignored.

Hence, Butcher's warranty expense for Year 4 is $10,000

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c.Head of the contracting activity

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Answer:

The correct option is B

Explanation:

FDI is an investment in the business through an investor from another country and control is with the foreign investor over the company purchased.

Licensing means all the contracts to which the third part has granted or licensed any right to its subsidiaries or company.

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3 years ago
FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock outstanding, 1 million shares o
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Explanation:

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Using this formula

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7 0
3 years ago
Jumpin Corporation uses the percentminusofminussales method to estimate uncollectibles. Net credit sales for the current year am
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The amount of Uncollectible Account Expense reported on the income statement will​ be: $ 64,800

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In the percent of sales method emphasis is laid on the matching principle in the income statement and amount of bad debts expense is subtracted from the accounts receivables.

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