Puzzles Company sells merchandise with a 1-year warranty. In Year 1, sales consist will average $16 per unit sold, and 40% of the repairs will be made in Year 1 and 6 Puzzles Company should show warranty expense of O a. $35,520. O b. $23,680. O c. $0.
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- On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.Blazer Company sells merchandise with a 1-year warranty. In Year 1, sales consisted of 3,300 units. It is estimated that warranty repairs will average $12 per unit sold, and 30% of the repairs will be made in Year 1 and 70% in Year 2. In the income statement for Year 1, Blazer Company should show warranty expense of a.$39,600. b.$27,720. c.$11,880. d.$0.Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of 2,987 units. It is estimated that warranty repairs will average $17 per unit sold, and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Hall should show warranty expense of a.$35,545 b.$0 c.$50,779 d.$15,234
- Hall Company sells merchandise with a one-year warranty. In the current year, sales consist of 4,413 units. It is estimated that warranty repairs will average $15 per unit sold and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Hall should show warranty expense of a.$0 b.$66,195 c.$46,337 d.$19,859Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of 2,392 units. It is estimated that warranty repairs will average $17 per unit sold, and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Hall should show warranty expense of Oa. $40,664 Ob. so Oc. $28,465 Od. $12,199Product A comes with a two year warranty when purchased by customers. The estimated warranty costs as a percentage of dollar sales are 3% in the year of sale and 5% in the second year after the sale. The following information relates to sales and warranty expenditures of Product A Actual warranty expenditures $ 10,000 $ 35,000 Year Year 1 Year 2 Sales $400,000 $500,000 Which of the following is NOT part of the required journal entry in Year 1 based on the above information? Multiple Choice Credit cash $10,000 Debit warranty expense $12,000 None of the other alternatives are correct Debit warranty expense $32,000 Credit sales $400,000
- On April 1, Year 1, Halo Co. issued a $5,000 face value discount note to the Capri Bank. The note had a 12 percent discount rate and a one-year term. If Halo Co. earned $2,000 of revenue in Year 1, the amount of net income would be O $2,000 O $1,550 O $1,400 O $1,800Kimber Sales offers warranties on all their electronic goods. Warranty expense is estimated at 3.5% of sales revenue. In 2018, Kimber had $333,000 of sales. In the same year, Kimber paid out $8,750 of warranty payments. Provide the journal entry to record the warranty expense. What is the balance of the liability account? Account name Debit CreditPresley Company sells a product that includes a one-year warranty on parts and labor. During the year, 10,000 units are sold. Presley expects that 3% of the units will be defective and that the average warranty cost will be $50 per unit. Actual warranty costs incurred during the year were $14,000. Instructions Prepare the journal entries to record (a) the estimated warranty costs and (b) the actual costs incurred. Prepare the necessary journal entries for the following transactions: (a) On September 1, Lore Company borrowed $150,000 from National Bank on a 6-month, 8% note. (b) On December 31, Lore Company accrued interest (assume adjusting entries are only made at the end of the year).
- Lachgar Industries warrants its products for one year. The estimated product warranty is 4% of sales. Assume that sales were $210,000 for June. In July, a customer received warranty repairs requiring $140 of parts and $95 of labor. a. Journalize the adjusting entry required at June 30, the end of the first month of the current fiscal year, to record the accrued product warranty. b. Journalize the entry to record the warranty work provided in July.Stable Enterprises had sales of $230,000 in Year 1. Stable warrants its products and estimates warranty expense to be 4% of sales. In Year 2 Stable paid $9,000 cash to settle warranty obligations. Which of the following journal entries would be required to recognize the settlement of the warranty obligations? Multiple Choice O Account Titles Warranty Expense Cash Account Titles Warranty Expense Warranty Payable Account Titles Warranty Payable Debit $9,000 Debit $9,200 Debit $9,000 Credit $9,000 Credit $9,200 Credit.A company sells its product subject to a warranty that covers the cost of parts for repairs during the six months after the date of sale. Warranty costs are estimated to be 6% of sales. During the month of June, the company performed warranty work and used $12,000 worth of parts to do the warranty work. Sales for June amounted to $450,000.a. Record the warranty expense for the month of June.b. Record the costs of the warranty work completed in June.c. If the Estimated Warranty Liability account had a credit balance of $10,000 on May 31, what is the account balance at June 30? Debit Credit a. b. c.