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
On October 31, Legacy Rocks Inc., a marble contractor, issued for cash 400,000 shares of $10 par common stock at $18, and on Nov
ivann1987 [24]

Answer: The answer is as follows:

Explanation:

Journal entries are as follows:

For October 31:

Cash  (400,000 × $18)                   $7,200,000

Common stock  (400,000 × $10)                                          $4,000,000

Paid in capital in excess of par value-common stock         $3,200,000

( record of issuing common stock)

For November 19:

Cash  (50,000 × $80)                    $4,000,000  

Preferred stock (50,000 × $75)                                             $3,750,000

Paid in capital in excess of par value-Preferred stock        $250,000

( record of issuing preferred stock)

8 0
3 years ago
The elements of the business environment include the:.
quester [9]

Answer:technological environment, economic and legal environment, competitive environment

Explanation:

5 0
3 years ago
If the economy is experiencing an inflationary gap, the Fed should conduct ______ monetary policy to ______ aggregate demand.
Romashka [77]
The answer is Contractionary and Decrease
6 0
2 years ago
Creating your own flyer about cars
kvasek [131]

Answer:

what

Explanation:

5 0
2 years ago
A review of Munchen Corporation's financial statements reveals the following information: cost of goods sold: $100,000; decrease
drek231 [11]

Answer:

The Cash paid to suppliers was $85,000

Explanation:

Data provided in the question:

Cost of goods sold = $100,000

Decrease in inventory = $5,000

Increase in accounts payable = $10,000

Now,

Cash paid to suppliers will be

= Cost of goods sold - Decrease in inventory - Increase in accounts payable

= $100,000 - $5,000 - $10,000

= $85,000

Hence,

The Cash paid to suppliers was $85,000

8 0
3 years ago
Other questions:
  • 12. What was the most important aspect of the southern economy in the late nineteenth and early twentieth centuries? a. Agricult
    9·1 answer
  • Royal bank quotes a value for the japanese yen (¥) of $0.007, and a value for the canadian dollar (c$) of $0.821. the cross exch
    14·1 answer
  • The annual demand for an item is 10,000 units. The cost to process an order is $75 and the annual inventory holding cost is 20%
    8·1 answer
  • The concept of an "artificial being: refers to which form of business organization?
    10·1 answer
  • Evan Engineering Group receives royalties on a technical manual written by two of its engineers and sold to a publishing company
    5·1 answer
  • The CPI for this year is calculated by dividing thevalue of all goods and services produced in the economy this year using this
    7·1 answer
  • Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently
    8·1 answer
  • 4. Does the same thing work for every customer?
    6·2 answers
  • Culver Company is involved in four separate industries. The following information is available for each of the four industries.
    8·1 answer
  • Assignment:
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!