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kotykmax [81]
3 years ago
8

Carnes Electronics sells consumer electronics that carry a 90-day manufacturer’s warranty. At the time of purchase, customers ar

e offered the opportunity to also buy a two-year extended warranty for an additional charge. During the year, Carnes received $412,000 for these extended warranties (approximately evenly throughout the year). Required: 1-a. Does this situation represent a loss contingency? 1-b. How should it be accounted for? 2. Prepare journal entries that summarize sales of the extended warranties and any aspects of the warranty that should be recorded during the year.
Business
1 answer:
saw5 [17]3 years ago
3 0

Answer: See explanation

Explanation:

a. This is not a loss contingency. A loss contingency occurs when the value of an asset is reduced because of an occurence on the future. This isn't the case here as a separate sales transaction occured.

b. To account for it, we have to defer the revenue as a liability and then we will use the straight line basis to calculate the warranty expense.

2. Dr Cash $412,000

Cr Unearned revenue - extended warranties $ 412,000

(To record the sale of extended warranty)

Dr Unearned revenue - extended warranties. $57937.50

Cr. Revenue - Extended Warranties $57937.50

(To record revenue earned on extended warranty)

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Myrna and Geoffrey filed a joint tax return in 2018. Their AGI was $85,000, and itemized deductions were $24,700, which included
KIM [24]

Answer:

$700

Explanation:

to calculate the amount of state income tax refund that must be included in the 2019 tax return we can use the following equation:

state income tax refund included in gross income = itemized deduction - standard deduction = $24,700 - $24,000 = $700

the rest of the refund = $1,800 - $700 = $1,100, should not be included in the 2019 gross income

6 0
3 years ago
3. Some of these words are paired opposites where one word represents something good and the other something bad (peace/worry, w
olga_2 [115]

Answer: bureaucratic control - a government with relentless regulations rules.

corporate control - a large corporation controls people through media or products.

philosophical/religious control - an ideology enforced by the government controls society.

Explanation:

6 0
2 years ago
Katherine is developing a forecast for her company's next year's sales of an organic fertilizer to retail gardening nurseries. s
Furkat [3]

She is engaging in <u>Bottom-up</u> Forecasting.

<h3>What is Bottom-Up Forecasting?</h3>

Bottom-up forecasting is a high-level prediction of micro-level inputs to estimate revenue for a particular year or group of years. Revenue teams, for example, frequently utilize this strategy to forecast the company's future performance based on individual sales or rep performance.

Bottom-up forecasting is analogous to assessing the health of a complicated system, such as a vehicle, by examining its most fundamental components, such as its engine components.

The essential distinction between top-down and bottom-up methodologies is the perspective used to conduct your analysis. Bottom-up forecasting is excellent for assessing the impact of certain performance measures on revenue. However, in order to truly grasp the health of a complicated firm, we must examine it from several perspectives.

In a top-down study, we estimate aggregate demand. This style of evaluation considers past performance to forecast future performance.

Therefore, Katherine is developing a forecast for her company's next year's sales of organic fertilizer to retail gardening nurseries. she is assembling the sales estimates for her company's product by adding together the territory estimates provided by her salespeople. she is engaging in <u>Bottom-Up forecasting.</u>

For more information on Bottom-up Forecasting, refer to the given link:

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3 0
2 years ago
Sunshine's Organic Market sells organic produce. Assume that labor is the only input that varies for the firm. The store manager
Varvara68 [4.7K]

Answer:

The 14th worker will need to increase sales by 20 pounds  for a total of 390 pounds

Explanation:

The worker cost is $80

To make a profit the company will need sales for at least that amount:

$80 wages per day / $4 earnings per pound = 20 pounds

in total sales would need to be 370 + 20 = 390 pounds

8 0
4 years ago
The u.s. labor department said american workers set a record in august for taking what action?
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The United States labor department said American workers set a record in August for "quitting their jobs."

The recent statistics released show that about 4.3 million Americans quit their jobs between December 2020 to August 2021.

The statistics show that the 4.3 million Americans that resigned from their jobs formed about 3 percent of the total work population.

According to the U.S Labor Department, this is a record figure in the U.S. labor-related issues.

Hence, in this case, it is concluded that many Americans are quitting their jobs willingly in recent times.

Learn more here: brainly.com/question/15951795

5 0
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