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Flauer [41]
3 years ago
13

Milford Company sells a motor that carries a three-month unconditional warranty against product failure. Based on a reliable sta

tistical analysis, Milford knows that between the sale and the end of the product warranty period, two percent of the units sold will require repair at an average cost of $50 per unit. The following data reflect Milford's recent experience:
Oct Nov Dec Dec 31 Total
Units unsold 24000 26000 26000 76000
Known products failure from sales in:
October 130 190 170 490
November 130 220 350
December 210 210
Calculate, and prepare a journal entry to record, the estimated liability for product warranties at December 31. Assume that warranty costs of known failures have already been reflected in the records.
Business
1 answer:
Solnce55 [7]3 years ago
3 0

Answer: See explanation

Explanation:

Number of units sold = 76000

Percentage repair= 2%

Estimated defective units = Percentage repair × Units sold = 2% × 76000 = 1520

Actual defective units = 490 + 350 + 210 = 1050

Unclaimed warranty = Estimated defective units - Actual defective units = 1520 - 1050 = 470

Repair cost = $50

Warranty expense = 470 × $50 = $23500

The journal entry will then be:

31 December:

Debit: Product warranty expense = $23500

Credit: Estimated liability for product warranty = $23500

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gogolik [260]

Answer:

Passengers Revenue

<h3>Explanation:</h3>
  • Passenger revenue means those monies wherever paid by passengers who are to embark at any U.S. port for water transportation and all other accommodations, services, and facilities relating thereto.
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5 0
1 year ago
Shelby Boat Wash's cost formula for its cleaning equipment and supplies is $2,940 per month plus $35 per boat. For the month of
Vilka [71]

Answer:

$1,540

Explanation:

Calculation for the activity variance for cleaning equipment and supplies in September

First step is to calculate for theFlexible budget

Using this formula

Flexible budget =[Cleaning equipment and supplies +(Amount per boat ×Actual level of activity)

Let plug in the formula

Flexible budget =[$2,940 + ($35 × 29)]

Flexible budget =$2,940+$1,105

Flexible budget =$3,955

Second step is to calculate for the Planning budget using this is formula

Planning budget =[Cleaning equipment and supplies +(Amount per boat ×Planned activity ]

Let plug in the formula

Planning budget= [$2,940 + ($35 × 73)]

Planning budget=$2,940+$2,555

Planning budget=$5,495

Now let calculate for the activity variance

Using this formula

Activity variance=Flexible budget-Planning budget

Let plug in the formula

Activity variance=$3,955-$5,495

Activity variance=$1,540 Favorable

Therefore the Activity variance for cleaning equipment and supplies in September is closest to:$1,540 Favourable reason been that the flexible budget is lesser than the planning budget

5 0
3 years ago
It is important for a good economic model to predict cause and effect so that it can: explain events that have occurred and help
liraira [26]

Answer:

Yes it is

Explanation:

Because Prediction of cause and effect is important for the good economic model. If the economic model observe the cause and effect relationship, then it can be helpful to anticipate from the similar situation in future. For example, recession is causes recession. If the economic model observe it, then it can be helpful to control recession if t occurs in future.

5 0
3 years ago
Read 2 more answers
Sometimes entrepreneurs spend so much time and energy building the business that relationships are destroyed. What phrase best d
tekilochka [14]

Answer to this Question is

D) It's possible to score points in the wrong game.

Explanation:

Yes, its very much true that entrepreneurs build businesses from scratch, they build big empires by providing customers the most innovative products. They keep on finding the new solutions for the people's problems. Yes, while putting this handwork and changing the business and wold's landscape they put so much time, effort and energy that they get very less time for themselves that's why they cant give much time to their relationships and they have to loss them. That's why it is said that its just like scoring points in the wrong game.

5 0
3 years ago
Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or
alexandr402 [8]

Answer:

June 4 Sold $650 of merchandise (that had cost $400) on credit to Natara Morris.

June 4

Dr Accounts receivable 650

    Cr Sales revenue 650

June 4

Dr Cost of goods sold 400

    Cr Inventory 400

5 Sold $6,900 of merchandise (that had cost $4,200) to customers who used their Zisa cards.

June 5

Dr Accounts receivable 6,693

Dr Credit card fees 207

    Cr Sales revenue 6,900

June 5

Dr Cost of goods sold 4,200

    Cr Inventory 4,200

June 5, after Zisa transfers the money

Dr Cash 6,693

    Cr Accounts receivable 6,693

6 Sold $5,850 of merchandise (that had cost $3,800) to customers who used their Access cards.

June 6

Dr Unbilled revenue 5,733

Dr Credit card fees 117

    Cr Sales revenue 5,850

June 6

Dr Cost of goods sold 3,800

    Cr Inventory 3,800

8 Sold $4,350 of merchandise (that had cost $2,900) to customers who used their Access cards.

June 8

Dr Unbilled revenue 4,263

Dr Credit card fees 187

    Cr Sales revenue 4,350

June 8

Dr Cost of goods sold 2,900

    Cr Inventory 2,900

10 Submitted Access card receipts accumulated since June 6 to the credit card company for payment.

June 10

Dr Accounts receivable 9,996

    Cr Unbilled revenue 9,996

13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $429 balance in McKee’s account stemmed from a credit sale in October of last year.

June 13

Dr Bad debt expense 429

    Cr Allowance for doubtful accounts 429

17 Received the amount due from Access.

June 17

Dr Cash 9,996

    Cr Accounts receivable 9,996

18 Received Morris’s check in full payment for the purchase of June 4.

June 18

Dr Cash 650

    Cr Accounts payable 650

3 0
3 years ago
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