1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Slav-nsk [51]
3 years ago
13

A Plus Appliances sells dishwashers with a fourminusyear warranty. In​ 2019, sales revenue for dishwashers is $ 88 comma 000. Th

e company estimates warranty expense at 4.5​% of revenues. What is the total estimated warranty payable of A Plus Appliances as of December​ 31, 2019? A Plus Applicances began operating in 2019.​
Business
1 answer:
Ierofanga [76]3 years ago
3 0

Answer:

Warranty Expense       (Debit)   $3,960

Warranty Liability                                        (Credit) $3,960

Explanation:

The principle we apply while making entries for standard warranty is this:

The <u>estimated amount of warranty expense</u>, <em>which a company founds as a percentage of its sales from historical claims and data</em>, is taken as benchmark to accrue the warranty expense in the period when the sale is made <em>(matching principle) .</em>

<em />

In our question, 4.5% is the estimated warranty expense.

The company then sets off the estimated warranty expense (Debit)

(<em>4.5% * $88,000 = $3,960</em>)

with the warranty liability (Credit) to entertain any claims in future.

You might be interested in
How is a change in the quantity demanded illustrated on the demand curve?
mars1129 [50]

Answer:

There is the diagram and some explanations

6 0
2 years ago
Palmer Products has outstanding bonds with an annual 8 percent coupon. The bonds have a par value of $1,000 and a price of $865.
Andre45 [30]

The yield to maturity on the bonds is 10.0868%

<u>Explanation</u>:

Given,

Annual coupon rate = 8% = 0.08

Par value = $ 1000

Price = $ 865

                               N = 11 \times 1 .

                            PV = $ 865

                         PMT = ( Par Value \times The coupon rate) / F

                                 = ( 1000 \times 0.08 ) / 1

                                 = 80.

                           FV = 1000.

Financial calculator solution

the yield to maturity = I = 0.1008668

                                      = 10.0868% .

6 0
3 years ago
The sarbanes oxley act was passed to
Rzqust [24]
The correct answer to your question is letter D. "Both A and C"
3 0
3 years ago
Bloomfield Bakers accounts for its investment in Clor Confectionary under the equity method. Bloomfield carried the Clor investm
blagie [28]

Answer:

28%

Explanation:

let X = the percentage of ownership of Clor Confectionery

the investment account balance = $150,150 - X$20,500 + X75,650 = $165,550

$150,150 + X$55,150 = $165,550

X$55,150 = $15,400

X = $15,400 / $55,150 = 0.2792 = 27.92% ≈ 28%

6 0
2 years ago
For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance.
mestny [16]

Answer:

dont be lonely

Explanation:

5 0
3 years ago
Other questions:
  • Under the FINRA Conduct Rules, a broker-dealer may charge a customer all of the following services except:_______.a. collection
    12·1 answer
  • Select the first and last steps in the decision-making process. Identify the decision to be made. Gather information and data. S
    8·2 answers
  • Sales for boxes of Girl Scout cookies over a 4-month period were forecasted as follows: 100, 120, 115, and 123. The actual resul
    14·2 answers
  • Select the examples that best demonstrate likely employers for Design/Pre-Construction workers. Check all that
    5·2 answers
  • Current assets are economic resources that are expected to be converted to cash or used up by the business within one year or th
    14·1 answer
  • The rise in the number of mini-multinationals means that Group of answer choices there is greater state involvement in industry.
    11·1 answer
  • Assume that effective forecasting requires a combination of technique, system support, and administration.
    6·1 answer
  • PFC Kim's living expenses are $1200/month. Her base pay is $1546.80 and she also receives $6.90 in partial BAH and BAS of $367.9
    8·1 answer
  • Which company provides business credit rating services for businesses looking o finance loan through bank????? I put the picture
    10·1 answer
  • Windmill Corporation,a Dutch corporation,is owned by the following unrelated persons: 50 percent by a U.S.corporation,5 percent
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!