A new product introduced by Reyes Promotions carries a two-year warranty against defects. The estimated warranty costs related to peso sales are as follows: Year of sale... 3% 5% Year after sale... Sales and actual warranty expenditures for the years ended December 31, 2020 and 2021 are as follows: Sales 800,000 1,000,000 Expenditures 12,000 70,000 2020 2021 11. How much is the warranty expense in 2021? 12. How much is the estimated liability as of December 31, 2021? Assume the 2020 warranty did not yet expire.
Q: A new product introduced by Beauty Promotions carries a two-year warranty against defects. The…
A: The warranty liability is the expense due as per estimation but not demanded by customer yet.
Q: On January 1, 2021, ACORN Company offered a three-year warranty from date of sale on any of its…
A: Expected Warranty cost = (Sales - sales return) x 2% = (₱9,000,000 - ₱9,000,000*1/5) x 2% = ₱144,000
Q: 1)Suppose the company in the previous question offers a two-year extended warranty, which it sells,…
A: Given:Company offers two year extension warrantyExtended warranty sales total=$20000During 2020 the…
Q: The selling price of the Appliances Company's units is P 80,000 each. The buyers are provided with a…
A: The warranty Expense is the expense estimated based on past year experience depending on sales…
Q: During 2005, Cory Company introduced a new line of machines that carry a two-year warranty against…
A: The warranty Expenses is recognized and recorded at the time when the sales are made.
Q: • Allan Company had sales of $1,500,000 during 2021. Actual warranty costs during 2021 were $60,000.…
A: A warranty is a written guarantee that is given by the seller to the buyer for the product against…
Q: Hall Company sells merchandise with a one-year warranty. In the current year, sales consist of 4,413…
A: Warranty expense is the amount that a company estimates to be incurred in a warranty period or is…
Q: Bull has a one-year product warranty on selected items in its product line. The estimated warranty…
A: Estimated warranty liability 2021 = P 416000 Warranty claims honored 2021 = P 416000 Estimated…
Q: During 2011, Rex Company introduced a new product carrying a two-year warranty against defects. The…
A: Estimated warranty liability will be equal to Estimated Warranty Expenses minus Actual warranty…
Q: A company manufactures electronic equipment and offers a one-year warranty with each unit sold. For…
A: Hi student Since there are multiple sub-parts in this question, we will answer only first three…
Q: Siomai Company estimates its annual warranty expense as 2% of annual net sales. The following data…
A: 1. Warranty Expense = 2% of Net sales Net sales = 3,200,000 Warranty expense = 3,200,000 x 2% =…
Q: An entity normally provides 4% warranty on its products. The provision in the first quarter was for…
A: Warranty expenses is a form of assurance being provided by seller to the buyer that in case product…
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A: The warranty Expenses are estimated on the basis of percentage of the sales of current period,…
Q: What is the warranty expense for 2020? What is the warranty expense for 2021? What is the warranty…
A: Given information is: In 2020, Pluto Company started selling new computer that carried a 2-year…
Q: 15. A new product introduced by COCONUT Enterprise carries a two-year warranty against defects. The…
A: Total estimated liability = Total sales x estimated warranty costs % = (8000000 + 10000000) x (3% +…
Q: 1) In January 2020, Simon Corporation began selling a new line of products that carry a two-year…
A: Formula: Warranty expense for 2021 = Warranty Liability at the end of 2021 + Actual Warranty…
Q: In 2020, Dare Company began selling a new calculator that carried a two-year warranty against…
A: A warranty liability is a liability account in which a company records the amount of the repair or…
Q: On January 1, 2021, West Company offered a three-year warranty from date of sale on any of its…
A: The warranty expense is the expense related to repair , replacement or compensation made by the…
Q: Best Appliance Store offers a two-year warranty on all appliances sold. The company estimates that…
A: The warranty Expenseis the estimated expense to be made for the sales made during the period.
Q: During 2011, Rex Company introduced a new product carrying a two-year warranty against defects. The…
A: Warranty is the form of assurance which is being provided by the seller to the customer that in case…
Q: Raya Company offers a 3-year warranty on its products. Raya estimated warranty costs to be 5% of…
A: The warranty Expenses are estimated on the basis of sales revenue earned during the period.
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A: Given information is: Blue Jay, Inc., manufactures and sells computer monitors with a three-year…
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A: Introduction: Warranty is a contingent liability that the organization records in its books of…
Q: Siomai Company estimates its annual warranty expense as 2% of annual net sales. The following data…
A: Warranty expense during the year = Net sales x estimated % of warranty expense
Q: 1. During 2019, Yamashita 10 points Company introduced a new product carrying a two-year warranty…
A: Warranty expense refers to the amount that the business has already incurred for the product repair…
Q: Charm Company sells 1,000 units of radio sets at P9,000 each for cash. Each radio set is under…
A: Total estimated warranty expense = Sales units x 60% x warranty cost per unit = 1000 units x 60% x…
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A: Estimated warranty expenses = sales x 4% = 1500000 x 4% = 60,000
Q: Cupola Awning Corporation introduced a new line of commercial awnings in 2018 that carry a two-year…
A: Contingent liability: The contingent liability is not treated as a liability of the company on the…
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A: The warranty expense refers to the cost expected to be incurred for repair or replacement after the…
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A:
Q: Problem 1 In 2020, Plumpton Company started selling new computer that carried a 2-year warranty…
A: The warranty expense is the expense which arises with the sales made during the period.
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A: Definition: Contingencies: A business situation that occurs due to uncertain business conditions…
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A: Formula: Sales revenue = Sales units x Sales price per unit
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A: The estimated liability for warranties include the amount of estimated warranty Expenses that is not…
Q: During 2011, Rex Company introduced a new product carrying a two-year warranty against defects. The…
A: Formula: Estimated warranty liability amount= Sales amount x Warranty liability %
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A: Introduction: An income statement is a critical financial record for every company. It illustrates…
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A: Sales = 110*$40 Sales = $4,400
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A: Carrying value of note payable Liability note payable =$600000 on January 1 Add Finance cost…
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A: Expected warranty liability
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Q: warranty
A: 2 year warranty coverage included in sale price. Warranty expenses should be recorded in 2021 as…
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A: The original cost of an asset, as recorded in the books or balance sheet of a corporation, less the…
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A: Warranty expense is recognized by applying a pre-determined percentage on the value of sales. This…
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A: Answer: 2, 200, 000 Explanation/ Computation: The warranty liability is a…
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A: Entry to record the sales.
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A: Adjusting journal entry: At year end when company finalise its accounts then any unrecognized income…
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- 15. A new product introduced by COCONUT Enterprise carries a two-year warranty against defects. The estimated warranty costs related to dollar sales are as follows: * Year of sale 3 percent Year after sale 5 percent Sales and actual warranty expenditures for the years ended December 31, 2020 and 2021, are as follows: Actual Warranty Sales P 8,000,000 10,000,000 Expenditures P 200,000 700,000 2020 2021 What amount should COCONUT report as its estimated liability as of December 31, 2021? P 40,000 P 740,000 O P 240,000 O P 540,000Grouper Ltd. manufactures a line of amplifiers that carry a three-year warranty against defects. Based on experience, the estimated warranty costs related to dollar sales are as follows: first year after sale-3% of sales; second year after sale-4% of sales; and third year after sale-5% of sales. Sales and actual warranty expenditures for the first three years of business were: Sales Warranty Expenditures 2021 $870,000 $17,100 2022 1,010,000 48,400 2023 1,041,000 80,000 (a) Calculate the amount that Grouper should report as warranty expense on its 2023 income statement and as a warranty liability on its December 31, 2023 SFP using the assurance-type warranty (expense-based approach). Assume that all sales are made evenly throughout each year and that warranty expenditures are also evenly spaced according to the rates above. Warranty expense $ Warranty liability $2. During 2020, Joaquin Company introduced a new line of machines that carry a two-yearwarranty against manufacturer’s defects. Based on industry experience, the estimatedwarranty cost percentages related to peso sales are as follows:Year of sale 1%Year after sale 6%Sales and actual warranty expenditures for 2020 and 2021 were as follows:Year Sales Actual warranty expenditures2020 P1,000,000 P54,0002021 1,400,000 89,000a. How much is the warranty expense to be recognized in 2020 and 2021,respectively?b. What is the estimated warranty liability as of December 31, 2020 and 2021,respectively?
- During 2020, Red Company introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to peso sales are 4% within 12 months following sale and 6% in the second 12 months following sale. Sales and actual warranty expenditures for the years ended December 31, 2020 and 2021 are as follows: Sales Actual Expenditures2020 P5,000,000 P150,0002021 6,000,000 550,000At December 31, 2021, what would be reported as estimated warranty liability?a. P360,000 b. P400,000 c. P240,000 d. P50,000During 2020, Buenas Company introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to peso sales are 4% within 12 months following sale and 6% in the second 12 months following sale. Sales and actual warranty expenditures for the years ended December 31, 2020 and 2021 are as follows: Sales Actual Expenditures P5,000,000 P150,000 6,000,000 550,000 At December 31, 2021, what would be reported as estimated warranty liability? a. P360,000 b. P400,000 c. P240,000 d. P50,000Concord Ltd. manufactures a line of amplifiers that carry a three-year warranty against defects. Based on experience, the estimated warranty costs related to dollar sales are as follows: first year after sale-2% of sales; second year after sale-4% of sales; and third year after sale-5% of sales. Sales and actual warranty expenditures for the first three years of business were: Sales Warranty Expenditures 2021 $750,000 $ 15,900 2022 1,010,000 46, 000 2023 1,017, 000 80,000 (a) Calculate the amount that Concord should report as warranty expense on its 2023 income statement and as a warranty liability on its December 31, 2023 SFP using the assurance - type warranty (expense - based approach). Assume that all sales are made evenly throughout each year and that warranty expenditures are also evenly spaced according to the rates above. Warranty expense Warranty liability
- In 2020, KD Corporation began selling a new line of products that carry a two-year warranty against defects.Based upon past experience with other products, the estimated warranty costs related to peso sales are as follows:First year of warranty 2%Second year of warranty 5%Sales and actual warranty expenditures for 2020 and 2021 are presented below: 2020 2021Sales P900,000 P1,200,000Actual warranty expenditures 30,000 60,000What is the estimated warranty liability at the end of 2021?a. P87,000 b. P24,000 c. P57,000 d. P147,000In 2019, Caramel Corporation began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to peso sales are as follows: First year of warranty 5% Second year of warranty 9% Sales and actual warranty expenditures for 2019 and 2020 are presented below: 2019 2020 Sales P3,000,000 P4,000,000 Actual warranty expenditures 100,000 250,000 Using the accrual method, what amount should Caramel report as a liability…During 2021, Eaton Co. introduced a new product carrying a two-year warranty against defects. The estimated warranty 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 the years ended December 31, 2021 and 2022 are as follows: Sales Actual Warranty Expenditures 2021 P 800,000 P12,000 2022 1,000,000 30,000 P1,800,000 P42,000 At December 31, 2022, Eaton should report an estimated warranty liability of
- In 2019, Shiftry Corporation began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to peso sales are as follows: First year of warranty 2% Second year of warranty 5% Sales and actual expenditures for 2019 and 2020 are presented below: 2019 2020 Sales 450,000 600,000 Actual warranty expenditures 15,000 30,000 What is the estimated warranty liability at the end of 2020?In 2025, Oriole Corporation began selling a new line of products that carry a two-year warranty against defects. Based upon experience with other products, the estimated warranty costs as a percentage of sales revenue are as follows: First year of warranty. 3% Second year of warranty 5% Sales revenue and actual warranty expenditures for 2025 and 2026 are presented below: Sales revenue Actual warranty expenditures) 2025 $755000 42000 2026 $1051000 72000 What is the estimated warranty liability at the end of 2026? (assume the accrual method)In 2018, Dubious company began selling new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to peso sales are as follows: First year of warranty 2% 2nd year of warranty 5% Sales and actual warranty expenditures are presented below: 2018 2019 Sales 5,000,000 7,000,000 Actual warranty costs 100,000 300,000 What is the estimated warranty liability on Dec. 31, 2019?