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
zysi [14]
2 years ago
13

ABC Company sells 300 machines for $5000 each in the current year. Each machine carries a one-year warranty. Experience from the

sale of similar machines in the past show warranty costs will average $100 per machine. ABC Company spent $10,000 to fulfill warranty agreements in the current year. What is the journal entry to accrue the remainder of warranty costs in the current year
Business
1 answer:
const2013 [10]2 years ago
7 0

Answer:

the journal entry to record warranty expense is:

Dr Warranty expense 30,000

    Cr Warranty liability 30,000

the journal entry to record actual expenses related to product warranties:

Dr Warranty liability 10,000

    Cr Cash (or inventory, or wages payable) 10,000

Depending on what type of costs are incurred by the company, the account credited will vary, e.g. if units are replaced, then inventory must be credited, or if units are repaired and only labor is used, then wages payable or cash should be credited. Since the question doesn't give us a lot of details, I credited cash.

You might be interested in
Suppose two types of consumers buy suits. Consumers of type A will pay $100 for a coat and $50 for pants. Consumers of type B wi
n200080 [17]

Answer:

The firm will not sell any bundle, the amount of bundle to be sold will be zero.

Explanation

Solution

Since firm sells at $25 each for coats and pants, then If consumer wants to purchase both Pant and Coat, the customer will have to pay 25 + 25 = $50.

Also, If consumer purchase Pant and Coat as a Bundle then, he will pay 150. From the question stated we can conclude  that  their is a form of interest to pay for Pant and Coat for Both consumers are higher than 25.

However, they will have to pay an amount less for 1 coat and 1 pant if they buy this in a separate way instead of a  Bundle.

We can say, that type of consumers (both) will not buy the pants and coat as a bundle, but will want to buy them separately.

Therefore, any bundle will not be sold by firm. the amount of Bundle sold will be known as a zero Bundle

5 0
3 years ago
Which of the following relationships between book value and cash received at sale results in a loss on the sale of a long-term d
creativ13 [48]

Answer:

a. Book value is greater than cash received.

Explanation:

Book value of an asset is the cost of an asset less accumulated depreciation

Cash received is the price the asset is sold for.

If the asset is sold for less than its book value, it is sold at a loss

If an asset is sold for more than its book value, it is sold at a gain

8 0
3 years ago
Below are the transactions for Salukis Car Cleaning for June, the first month of operations.
Kruka [31]

Answer:

Part 1

June 1

Debit : Cash $53,000

Credit : Bank Note $53,000

June 2

Debit : Cash $23,000

Credit : Common Stock $23,000

June 7

Debit : Equipment $58,000

Credit : Cash $58,000

June 10

Debit : Supplies $6,300

Credit : Account Payables $6,300

June 12

Debit : Cash $3,300

Credit : Service Revenue $3,300

June 16

Debit : Salaries $730

Credit : Cash $730

June 19

Debit : Advertising $330

Credit : Cash $330

June 23

Debit : Trade Receivables $4,300

Credit : Service Revenue $4,300

June 29

Debit : Salaries $780

Credit : Cash $780

June 30

Debit : Utility Bill $1,230

Credit : Cash $1,230

June 30

Debit : Dividends $430

Credit : Cash $430

Part 2 & 3

Cash : Debit Side - $53,000 + $23,000 + $3,300, Credit Side - $58,000 + $730 + $330+ $780+ $1,230+$430 = $17,800 (debit)

Bank Note : Debit Side  - Credit Side  - $53,000  = $53,000 (credit)

Common Stock : Debit Side - Credit Side - $23,000 = $23,000 (credit)

Equipment : Debit Side - $58,000 Credit Side - = $58,000 (debit)

Supplies : Debit Side - $6,300 Credit Side - = $6,300 (debit)

Accounts Payable : Debit Side - Credit Side - $6,300 = $6,300 (credit)

Service Revenue ; Debit Side - Credit Side - $3,300 + $4,300 = $7,600(credit)

Salaries : Debit Side - $730 + $780 Credit Side - = $1,510 (debit)

Advertising : Debit Side - $330 Credit Side - = $330 (debit)

Accounts Receivables : Debit Side - $4,300 Credit Side - = $4,300 (debit)

Utility Bill : Debit Side - $1,230 Credit Side - = $1,230 (debit)

Dividends : Debit Side - $430  Credit Side - = $430 (debit)

Part 4

<u>Trial Balance as at 30 June</u>

                                                  Debit                 Credit

Cash                                        $17,800

Bank Note                                                         $53,000

Common Stock                                                 $23,000

Equipment                            $58,000  

Supplies                                  $6,300

Accounts Payable                                              $6,300

Service Revenue                                                $7,600

Salaries                                     $1,510

Advertising                                 $330

Accounts Receivables            $4,300

Utility Bill                                  $1,230

Dividends                                   $430

Totals                                    $89,900            $89,900

Explanation:

The Accounting Process starts with recording transactions in the Journals. The Journals are then posted to the Account Affected and the balances of those Accounts are determined. The trial Balance is then prepared by extracting these balance to find the Debit and Credit Totals to check mathematical accuracy.

3 0
2 years ago
What is it about incentive systems that makes them so attractive to leaders attempting to implement organizational change
sveticcg [70]

Answer:

Incentive systems are so attractive to leaders who attempt to implement organizational change because they are powerful tools that can influence and motivate workers to embrace organizational change.

Explanation:

Incentive systems promote and encourage specific workers' actions or behavior. They are particularly used in businesses to motivate employees to adopt certain behaviors during a change transition by management.  Studies have shown that if correct incentive systems are correctly selected, implemented, and monitored, they can increase team performance by an average of 44 percent.  This improved performance makes incentive systems attractive to leaders who are implementing organizational changes.

4 0
3 years ago
The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fu
ivanzaharov [21]

Answer:

Standard price= $6.1

Explanation:

Giving the following information:

The quantity of direct materials used 3,800 lbs. Actual unit price of direct materials $6 per lb. Units of finished product manufactured 1,820 units Standard direct materials per unit of finished product 2 lbs.

Direct materials quantity variance—unfavorable $976 Direct materials price variance—favorable $380.

Direct material price variance= (standard price - actual price)*actual quantity

380= (SP - 6)3,800

6.1= standard price

Direct material quantity variance= (standard quantity - actual quantity)*standard price

976= (1820*2 - 3,800)*SP

6.1= standard price

5 0
3 years ago
Other questions:
  • You receive $1,200 today, $2,200 in one year, and $3,300 in two years. If you deposit these cash flows in an account earning 12%
    5·1 answer
  • A Treasury bond that settles on August 10, 2016, matures on September 27, 2021. The coupon rate is 4.6 percent and the quoted pr
    13·1 answer
  • Time value Personal Finance Problem Jim Nance has been offered an investment that will pay him ​$500 three years from today.
    8·1 answer
  • What is a benefit of obtaining a personal loan?
    15·1 answer
  • Which one of the four Ps of the Marketing Mix signifies and communicates how the product will reach the end-user (Customer/Consu
    5·1 answer
  • In Year 1, Costello Company performed work for a customer and billed the customer $14,000. In Year 2, the customer pays Costello
    12·1 answer
  • Which of the following statement(s) is(are) true regarding the selection of a portfolio from those that lie on the capital alloc
    11·1 answer
  • Cash paid for equipment would be reported on the statement of cash flows in_________.
    11·1 answer
  • On March 15, a fire destroyed Interlock Company's entire retail inventory. The inventory on hand as of January 1 totaled $4,950,
    12·1 answer
  • Sophie works as a superior in the bakery at pick and pay. what level of management is she?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!