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Rashid [163]
3 years ago
9

On September 1, Home Store sells a mower (that costs $240) for $540 cash with a one-year warranty that covers parts. Warranty ex

pense is estimated at 6% of sales and is recorded at the time of the sale. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $38 in materials taken from the Repair Parts Inventory. Prepare the September 1 entry to record the mower sale (and cost of sale) and the January 24 entry to record the warranty repairs.
Business
1 answer:
Fudgin [204]3 years ago
3 0

Answer:

J1

Cash $540 (debit)

Cost of Goods Sold $240 (debit)

Sales Revenue $540 (debit)

Inventory $240 (credit)

J2

Warranty Provision $38 (debit)

Direct Materials $38 (credit)

Explanation:

September 1 entries to record the cost and sale of the mower are :

Cash $540 (debit)

Cost of Goods Sold $240 (debit)

Sales Revenue $540 (debit)

Inventory $240 (credit)

The Warranty Expenses is recorded as :

Warranty Expense $32.40 (debit)

Warranty Provision $32.40 (credit)

Warranty = $540 × 6% = $32.40

When the mower is brought i for repairs, the amount of Provision is used as follows :

Warranty Provision $38 (debit)

Direct Materials $38 (credit)

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Answer:

$182300

Explanation:

$182300

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October credit sales will account for 50% of account receivable since it is paid in the month of sale

the calculation has been done in the attachment for further explanation

     

Download docx
7 0
2 years ago
Suppose the U.S. yield curve is flat at 4% and the euro yield curve is flat at 3%. The current exchange rate is $1.50 per euro.
lianna [129]

Answer:

$4.24287 million per year

Explanation:

Missing question:  The swap will call for the exchange of 1 million euros for a given number of dollars in each year.

For structured three separate forward contracts of the exchange of currencies, the forward price could be found as follows

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Year 1 = 1.50*(1.04/1.03) * 1 million euros

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Year 2 = $1.5293 million

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3 years ago
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Answer:

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The US government and every other government in the world works on a budget and the money it spends doing A, will not be spent doing B. So the government must decide which actions to take in order for maximizing the benefits of the population (i.e. choose between A or B depending on which causes the greatest common good).

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This partnership is being liquidated. hendrick and mitchum are each entitled to 40 percent of all profits and losses with the re
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Answer:

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Explanation:

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