In order for money to work properly, there can be only a certain amount of it in

QS 11-9 Recording warranty repairs LO P4 On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty

prisoha [69]

Answer:

On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty that covers parts

Recording of revenue:

Cash $490 (debit)

Revenue $490 (credit)

Recording of Warranty granted :

Assurance Warranty expense $49.00 (debit)

Warranty Provision $49.00 (credit)

$490 × 10% = $49.00

On July 24, 2017, the mower is brought in for repairs covered under the warranty requiring $34 in materials taken from the Repair Parts Inventory

When warranty is subsequently received:

Warranty Provision $ 34 (debit)

Repair Parts Inventory $ 34 (credit)

Explanation:

On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty that covers parts

Recording of revenue:

Cash $490 (debit)

Revenue $490 (credit)

We Recognise Revenue to depict transfer of control of mower

Recording of Warranty granted :

Assurance Warranty expense $49.00 (debit)

Warranty Provision $49.00 (credit)

$490 × 10% = $49.00

There is no option for customer to take the warranty or not, so this is a service warranty.The warranty is measured at the best estimate of expenditure required to settle the obligation that is at 10% of sales.

On July 24, 2017, the mower is brought in for repairs covered under the warranty requiring $34 in materials taken from the Repair Parts Inventory

When warranty is subsequently received:

Warranty Provision $ 34 (debit)

Repair Parts Inventory $ 34 (credit)

Utilise the Warranty Provision when the warranty claim is subsequently received

7 0

3 years ago

Howard's bank gave him a personal loan because they found him creditworthy. Which type of loan did Howard get?

Andreyy89

The correct answer to this question is this one: "Secured Loan."
Howard's bank gave him a personal loan because they found him creditworthy. The type of loan that Howard should get is secured loan.

7 0

3 years ago

Read 2 more answers

how much time does a bike with an acceleration of 2ms2 takes to increase its velocity from 10ms-2 to 30ms-2

aniked [119]

Answer:

Time, t = 10 seconds.

Explanation:

Given the following data;

Initial velocity, u = 10 m/s

Final velocity, v = 30 m/s

Acceleration, a = 2 m/s²

To find the time, we would use the first equation of motion;

$v = u + at$

Where;

v is the final velocity.
u is the initial velocity.
a is the acceleration.
t is the time measured in seconds.

Making time, t the subject of formula, we have;

$t = \frac{v - u}{a}$

Substituting into the equation, we have;

$t = \frac{30 - 10}{2}$

$t = \frac{20}{2}$

Time, t = 10 seconds.

4 0

2 years ago

) A company finds that consumer demand quantity changes with respect to price at a rate given by D'(p) = - 2000 p 2 . Find the d

Stells [14]

Answer:

D(p) = 2,000 ÷ Price + 434

Explanation:

The computation of the demand function is shown below:-

Number of units of the product = 3000 ÷ Price + C

834 = 2,000 ÷ $5 + C

834 = 400 + C

C = 834 - 400

C = 434

So, D(p) = 2,000 ÷ Price + 434

Therefore for computing the demand function we simply applied the above formula also we considered all the given information mentioned in the question

3 0

3 years ago

Waddell Company had the following balances in its accounting records as of December 31, 2015:

Lilit [14]

a. The amount of land on the balance sheet will be $36,000 which is historical cost of the land. Land is not subject to depreciation so it is recorded at historical cost and not carrying value.

b. The amount of rent expense reported on Income statement will be $5,500 [ $ 6,000 * 11 /12 months ]

c. The total amount of liabilities reported on the balance sheet will be $43,800. This includes the contingent liabilities and warranties.

Learn more at brainly.com/question/24540829

8 0

3 years ago