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Mandarinka [93]
3 years ago
7

Dynamo Corporation manufactures toasters. Each toaster comes with a 5-year assurance-type warranty. The toasters sell for $50 ea

ch. During Year 1, Dynamo sells 500 toasters, for cash. Past experience shows that the average warranty costs are $5 each or $2,500 for these toasters. In Year 1, Dynamo pays $500 cash for warranty costs on the toasters sold that year.
Required:
Prepare Dynamo's journal entries related to the sales and warranty in Year 1.
Business
1 answer:
Leno4ka [110]3 years ago
7 0

Answer:

1.Dr Cash 25,000

Cr Sales revenue 25,000

2. Dr Warranty expense 2,500

Cr Warranty liability 2,500

3.Journal entry for actual warranty expense

Dr Warranty liability 500

Cr Cash 500

Explanation:

Preparation of Dynamo's journal entries related to the sales and warranty in Year 1.

1.Dr Cash 25,000

Cr Sales revenue 25,000

(50*500)

2. Dr Warranty expense 2,500

Cr Warranty liability 2,500

3. Dr Warranty liability 500

Cr Cash 500

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The eccentricity, denoted by e, is defined as that fraction of an ellipse size which causes the focus to move away from the center. When an ellipse has an eccentricity of zero, this means that the focus and the center are in one same place. Thus the eccentricity of the secondary focus located at the sun is zero when located at the sun. Thus with an eccentricity of zero, the focus and center will be at same place therefore making the shape of the orbit to be a perfect circle.

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The journal entry to record the use of utilities in a factory could include which two of the following: (You may select more tha
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The correct options are:

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What do firms stand to gain by increasing their market power
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Assuming that the physical output (i.e., the actual quantity of all final goods and services) of all final goods and services re
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a) true

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3 years ago
Gardner Company expects sales for October of $249,000. Experience suggests that 45% of sales are for cash and 55% are on credit.
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$68,475

Explanation:

Data provided

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