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Crank
3 years ago
7

Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations up

grading their computer systems, and It backs each notebook It sells with a 90-day warranty against defects. Based on previous experience, Computer Wholesalers expects warranty costs to be approximately 6% of sales. Sales for the month of December are $410,000. Actual warranty expenditures in January of the following year were $13,500.
Does this situation represent a contingent liability?
Yes
No
Business
1 answer:
mamaluj [8]3 years ago
4 0

Answer:

The answer is Yes

Explanation:

Contingent liability is the type of liability that is dependent on some uncertain future events or occurrences. The 90-day warranty gives rise to contingent liability. This liability should be recognized when it can be reasonably estimated. For example, The estimation of contingent liability is 6percent of the sales of computers.

Therefore, contingent liability should be recognized.

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Alex Company rents space to a tenant for $2,200, per month. The tenant currently owes two months rent, November and December. Th
kaheart [24]

Answer:

The correct answer is D

Explanation:

The journal entry which is to be posted on December 31, is as:

Rent receivable A/c............................Dr   $4,400

        Rent Earned A/c...............................Cr    $4,400

As the two months rent is not paid so the adjusting entry which is to be posted is that the rent receivable account is debited whereas the rent earned account is credited with the amount of two months rent. (which is $2,200 + $2,200 = $4,400).

5 0
4 years ago
Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the mo
grandymaker [24]

Answer:

The predetermined overhead rate is 29.81 per machine hour

Explanation:

Fixed predetermine overhead rate = Estimated fixed manufacturing overhead / Estimated machine hour

Fixed predetermine overhead rate = $944,762 / 40,600

Fixed predetermine overhead rate = $23.27 per machine hour

Total predetermine overhead rate = Fixed predetermine overhead rate + Estimated variable manufacturing overhead

= $23.27 + $6.54

= 29.81 per machine hour

8 0
3 years ago
List and describe the four basic rights in the private enterprise system
Elodia [21]

Private property

competition

profits

and freedom of choice


8 0
4 years ago
Read 2 more answers
Southland farm sold ten september futures contracts on wheat. Southland farm will:______.
Oliga [24]

Southland farm sold ten September futures contracts on wheat. Southland farm will: both receive payment and deliver in September. Option A. This is further explained below.

<h3>What is the payment?</h3>

Generally, the act or process of making a monetary contribution to someone or something, or of receiving a monetary contribution.

In conclusion, Wheat futures contracts were sold by Southland Farm for 10 contracts in September. September will be a busy month for the Southland farm, with both payments and deliveries.

Read more about payment

brainly.com/question/15136793

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8 0
2 years ago
Which of the following is true about specification ?
IceJOKER [234]

Answer:

b. Specifications should not be set arbitrarily. If you set a specification to loosely, the customer will be dissatisfied or upset with the performance of what you provided, even though it meets the specification.

Explanation:

Specification is defined as a set of requirements that needs to be met when producing a product. They give a value that seperate this product from others in performance.

Specification should be narrowly defined as this will help effectively meet the customer needs.

When specifications are too loosely defined the product might not meet customer needs.

For example if a developer requires a laptop with high processing power and the company decides to provide a more generic and lower processing power, the target customer will not be satisfied

7 0
3 years ago
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