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Alona [7]
2 years ago
15

Cupola Awning Corporation introduced a new line of commercial awnings in 2018 that carry a two-year warranty against manufacture

r’s defects. Based on their experience with previous product introductions, warranty costs are expected to approximate 3% of sales. Sales and actual warranty expenditures for the first year of selling the product were: Sales Actual Warranty Expenditures $5,000,000 $37,500 Required: 1. Does this situation represent a loss contingency? 2. Prepare journal entries that summarize sales of the awnings (assume all credit sales) and any aspects of the warranty that should be recorded during 2018. 3. What amount should Cupola report as a liability at December 31, 2018?
Business
1 answer:
pishuonlain [190]2 years ago
8 0

Answer:

lol nobody can help

Explanation:

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According to the U.S. Public Health Service, which of the following would be considered a significant financial interest?
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2 years ago
The three components that are most important for establishing credibility are competence, caring, and.
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The three components that are most important for establishing credibility are competence, caring, and Character

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8 0
1 year ago
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Mashcka [7]

Answer:

The sell will generate a loss of $6,000.

Explanation:

Please find the below for detailed calculations and explanations:

- The equipment's net value at the time of disposal is equal to: Book value of the equipment - The accumulated depreciation of the equipment = 60,000 - 28,000 = $32,000;

- The gain/(loss) on the disposal of equipment is equal to: Sell price of the equipment - The equipment's net value at the time of disposal = 26,000 - 32,000 = $(6,000)

Thus, Tulip Corporation's disposal of the equipment at Dec 31st 2019 makes a loss of $6,000.

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3 years ago
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