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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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If an employer wants the employee to work more hours in a week, the result is a larger paycheck.

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An hourly wage job means that you get paid according to the number of hours you work and your wage will be determined by this. If you work more hours your paycheck will be higher and if you work less hours it will be lower. According to this, the statement that describes an hourly wage job is: if an employer wants the employee to work more hours in a week, the result is a larger paycheck.

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Inventory records for Marvin Company revealed the following: Date Num of units unit cost Mar. 1 Beginning Inventory 1000 7.20 Ma
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Answer:

Ending inventory= $5,040

Explanation:

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Under the LIFO inventory method, the ending inventory cost is calculated using the first units incorporated to inventory.

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Ending inventory in units= 3,000 - 2,300= 700 units

Ending inventory= 700*7.2= $5,040

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