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hjlf
4 years ago
9

Ralph’s Hardware updated its accounting system and agreed to purchase a computer system from a manufacturer, Bits and Bytes (BB)

. During contract negotiations, BB’s sales representative promised that the system was “A-1” and “perfect.” However, the written contract, which the parties later signed, disclaimed all warranties, express and implied. After installation the computer produced only random numbers and letters, rather than the desired accounting information. Is BB liable for breaching an express warranty? Why?
Business
1 answer:
Andrej [43]4 years ago
4 0
Given:
<span>Fact 1: During contract negotiations, BB’s sales representative promised that the system was “A-1” and “perfect.”
</span><span>Fact 2: The written contract, which the parties later signed, disclaimed all warranties, express and implied. 
</span><span>Fact 3: After installation the computer produced only random numbers and letters, rather than the desired accounting information

The express warranty is given in Fact 1 where the Sales Rep promised that the system was "A-1" and "perfect". There is a breach in express warranty here IF the written contract also expresses the same promises. 

However, the written contract </span>disclaimed all warranties, express and implied. AND BOTH PARTIES SIGNED THIS CONTRACT. It implies that the buyer has read through the contract and has agreed with what is written in the contract. Thus, they can't file a suit against BB for breaching an express warranty since the written and signed contract has already disclaimed all warranties. 

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Geraths Windows manufactures and sells custom storm windows for three-season porches. Geraths also provides installation service
defon

Answer:

July 1

No Entry

Sep 1

Dr Cash $2,000

Dr Accounts Receivable $400

Dr Cost of goods sold $1,100

Cr Inventory $1,100

Cr Unearned Service Revenue $554

Cr Sales Revenue $1,846

Oct 15

Dr Cash $400

Dr Unearned Service Revenue $554

Cr Service Revenue $554

Cr Accounts Receivable $400

Explanation:

Preparation of the journal entries for Geraths in 2020.

July 1

No Entry

Sep 1

Dr Cash $2,000

Dr Accounts Receivable $400

($2400-$2000)

Dr Cost of goods sold $1,100

Cr Inventory $1,100

Cr Unearned Service Revenue $554

($600/$600+$2000*$2400)

Cr Sales Revenue $1,846

($2,000/$600+$2000*$2400)

Oct 15

Dr Cash $400

($2400-$2000)

Dr Unearned Service Revenue $554

Cr Service Revenue $554

($600/$600+$2000*$2400)

Cr Accounts Receivable $400

($2400-$2000)

5 0
3 years ago
Lois and Peggy are the only two accountants at a construction company. They split the accounting work in the company according t
Lapatulllka [165]

Answer:

Job sharing

Explanation:

Job sharing is a sort of adaptable work course of action in which two individuals work to finish the work one individual would do in a self-contained all day job. In job-sharing agreement, two people handle work, and they share salaries. Hours can change: They may cooperate some portion of the week, and they may never observe one another.

5 0
3 years ago
What is network architecture?
Varvara68 [4.7K]

Answer:

 Network architecture refers to the layout of the network, consisting of the hardware, software, connectivity, communication protocols, and mode of transmission (i,e. wired or wireless). This FAQ will introduce you to the concept.

  I hope this answer helps you>>>>

4 0
3 years ago
Production 54,000 units 60,000 units Machine-hours 985 hours 1,800 hours Fixed overhead costs for September $53,400 $90,000 The
Juli2301 [7.4K]

Answer:

The fixed overhead production-volume variance is $9,000 U

Explanation:

In this question, we are tasked with calculating the fixed overhead production-volume variance.

We start by calculating the fixed overhead applied to production.

mathematically that is equal to : 54,000 * 0.03 * 50 = 81,000

The budgeted fixed overhead = 90,000

Mathematically,

Fixed overhead production-volume variance = Budgeted fixed overhead - fixed overhead applied to production = 90,000 - 81,000 = $9,000 U

6 0
3 years ago
Richard operates a hair styling boutique out of his home. The boutique occupies 420 of the home's 1,200 square feet of floor spa
Gennadij [26K]

Answer:

b. $1300 income

Explanation:

Apportionment rate = 420/1200 square feet = 35% attributable to the boutique.

Amount of income from the boutique would be all the income receipts as reduced by all the qualifying expenses relating to the business.

So, Richard's income from the boutique would be computed as under:

= $10,000 gross income - $2400 supplies expense - Depreciation attributable to boutique i.e 35% of $12,000 - utilities expenses attributable to boutique i.e 35% of 6000

= $10,000 - 2400 -  4200 - 2100

= $1300 income

6 0
3 years ago
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