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sleet_krkn [62]
3 years ago
9

During Year 3, Rex Co. introduced a new product carrying a 2-year assurance-type warranty against defects. The estimated warrant

y costs related to dollar sales are 2% within 12 months following sale and 4% in the second 12 months following sale. Sales and actual warranty expenditures for year ended December 31, Year 3 and Year 4, are as follows:
Year Sales Actual Warranty Expenditures

2008 $250,000 $2,250
2009 250,000 7,500
Total $500,000 $9,750

What amount should Gum report as estimated warranty liability on its December 31, 2009 balance sheet?
Business
1 answer:
cricket20 [7]3 years ago
6 0

Answer:

the amount that should reported as the estimated liability is $20,250

Explanation:

The computation of the amount that should reported as the estimated liability is as follows:

= Total sales × total percentage - total actual warranty expenditure

= $500,000 × 6% - $9,750

= $30,000 - $9,750

= $20,250

Hence, the amount that should reported as the estimated liability is $20,250

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What can occur as a result of not having an innovation and planning iteration?
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There will be no time to plan, demo, and improve together if there is no invention and planned iteration.

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2 years ago
Donald, the owner of a popular restaurant, is a religious man, and he needs to make a decision on whether he will add beer and w
alisha [4.7K]

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5 0
3 years ago
Baker Corp. is required by a debt agreement to maintain a current ratio of at least​ 2.5, and​ Baker's current ratio now is 3. B
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Answer:

$1.67 Million

Explanation:

Current asset = 15 Million    

Current liabiltiy = 15 Million/3

                          = 5 Million    

Let the inventory X can be purchased with short term debt without violation

per current ratio requirement    

(15 + x)/5+x = 2.5    

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Therefore, $1.67 Million inventory can Baker purchase without violating its debt agreement if their total current assets equal​ $15 million

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Answer:

The correct answer is: soldiering.

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