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ElenaW [278]
3 years ago
12

Monthly sales are​ $530,000. Warranty costs are estimated at​ 3% of monthly sales. Warranties are honored with replacement produ

cts. No defective products are returned during the month. At the end of the​ month, the company should record a journal entry with a credit​ to:
A. Sales for $15,900
B. Warranty Expense for $15,900
C. Estimated Warranty Payable for $15,900
D. Inventory for $15,900
Business
1 answer:
notka56 [123]3 years ago
8 0

Answer:

C. Estimated Warranty Payable for $15,900

Explanation:

The journal entry is shown below:

Warranty expense $15,900

    To Estimated warranty liability $15,900

(Being the warranty expense is recorded)

The computation is shown below:

= Monthly sales × estimated given percentage

= $530,000 × 3%

= $15,900

We simply debited the warranty expense as it increases the expenditure and credited the liabilities as it also increases the liabilities account

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1 year ago
Atlas Company provided the following information for last year: Operating income $ 92,000 Sales 235,000 Beginning operating asse
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8 0
2 years ago
New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect. Maloney's, Inc
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Answer:

The WACC is 11.64%

Explanation:

The weighted average cost of capital or WACC is the cost to firm of raising its total capital based on its capital structure. The capital structure of the firm can contain debt, preferred stock and common stock. The WACC take the weight of each component as a proportion of total value of assets and multiply it by the rate of return or cost of each component.

WACC = wD * rD * (1-tax rate)  +  wE *rE

Where,

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  • rD and rE are the cost of debt and cost of equity
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2 years ago
Which of these is a characteristic shared by both oligopolies and monopolies?a. Normal profits in the long runb. Significant bar
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Answer:

The characteristics which is shared among both monopolies and oligopolies is that they have significant barriers to the entry into the market.

Explanation:

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3 years ago
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