Use the information for the next two (2) questions. Bold Company estimated annual warranty expense at 2% of annual net sales. The net sales for the current year amounted to P4,000,000. At the end of the current year, the warranty liability was P60,000 and the warranty payments during the current year totaled P50,000. What is the warranty expense for the current year?

Use the information for the next two (2) questions. Bold Company estimated annual warranty expense at 2% of annual net sales. The net sales for the current year amounted to P4,000,000. At the end of the current year, the warranty liability was P60,000 and the warranty payments during the current year totaled P50,000. What is the warranty expense for the current year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Use the information for the next two (2) questions. Bold Company estimated annual warranty expense at 2% of annual net sales. The net sales for the current year amounted to P4,000,000. At the end of the current year, the warranty liability was P60,000 and the warranty payments during the current year totaled P50,000. What is the warranty expense for the current year? What is the warranty liability at the beginning of the year?
A company estimates that warranty expense will be 3% of sales. The company's sales for the current period are $262,000. The current period's entry to record the warranty expense is
White Hat Digital, Inc. starts the year with a credit balance of $3,500 in its Estimated Warranty Payable account. During the year, there were $224,000 in sales and $4,800 in warranty repair payments. White Hat Digital estimates warranty expense at 2% of sales. At the end of the year, what is the balance in the Estimated Warranty Payable account?
Siomai Company estimates its annual warranty expense as 2% of annual net sales. The following data relate to calendar year 2020:• Net sales- P3,200,000• Warranty liability (debit balance before adjustment) - P10,000• Warranty liability (credit balance after adjustment)- P54,000. Which of the following entries was made to record the 2020 estimated warranty expense? A. DR: Warranty Expense- P54,000 and Retained Earnings- P10,000; CR: Estimated Warranty Liabilities- P64,000 B. DR: Warranty Expense- P64,000; CR: Retained Earnings- P10,000 and Estimated Warranty Liabilities- P54,000 C. DR: Warranty Expense- P44,000; CR: Estimated Warranty Liabilities- P44,000 D. DR: Warranty Expense 64,000; CR: Estimated Warranty Liabilities- P64,000
At the beginning of the year, Laurier Inc. had a balance in its warranty liability account of $ 50000. During the year Laurier Inc. paid warranty costs of $ 62000. At the end of the year, Laurier Inc. estimated that its future warranty liability was $ 60000. How much is Laurier Inc.'s warranty expense for the year? Your Answer:
PHAGE COMPANY estimates its annual warranty expense at 4% of net sales. The following balances are given by EUSTASS: Net sales – 1,500,000; warranty liability – balance 12/31/2021 debit (before adjustment) of 10,000; warranty liability - balance 12/31/2021 credit (after adjustment) of 50,000. Which of the following entries was made to record the 2021 estimated warranty expense? a. Warranty expense 60,000 10,000 Retained earnings Warranty liability 50,000 b. Warranty expense Retained earnings Warranty liability 50,000 10,000 60,000 c. Warranty expense Warranty liability 40,000 40,000 d. Warranty expense Warranty liability 60,000 60,000
Accounting question: If you are doing a balance sheet with notes payable of 96,600. Assuming 13,600 of the note payable will be paid the following year. Where are how do you enter it. Long Term Liability?
The company had sales of $3,400,000. The estimated % that will be returned under the warranty is 1.5%. Record the journal entry for the estimated warranty expense
Carpet Company had a balance of P800,000 in the warranty liability account on December 31, 2020. The warranty expenditures totaled P2,500,000 for 2021. The warranty expense is calculated at 6% of sales. Sales amounted to P40,000,000 for 2021. What was the balance in the warranty liability account on December 31, 2021?
On May 31, Baker Co. issued an $35,679, 8%, 120-day note payable to Samunck Co. Assume Baker's fiscal year ends on June 30. Assume a 360- day year for your calculations. a) What is the interest EXPENSE recognized by Baker in the current fiscal year? b) What is the maturity value of the note? c) What is the maturity date of the note?
Lopez Inc. reported warranty expense of P 1,900,000 for the current year. The warranty liability account decreased by P200,000 during the year. What amount was incurred for warranty expenditures? a. P 1,900,000b. P 1,700,000c. P 2,100,000d. P 0
You are examining the financial statements of Oliver Company for the year ended December31, 2005. You analysis of the 2005 Notes Receivable account follows: 1. As of January 1, 2005, the balances of the following three notes were:a. Macasarte note is P70,000, which has been received on August 31, 2004, andpayable in annual installments of P10,000 principal plus accrued interest at 6% eachAugust 31.b. Jeanina note is P8,000, which has been discounted by a bank to Oliver Company at6% on November 1, 2004 and will due on November 1, 2005.c. Noynay note is P40,000 at 6% interest dated December 31, 2004, and due onSeptember 1, 2005. 2. Other balances as of January 1, 2005 were confirmed:a. Debit of P1,400 in the Interest Receivable account.b. Credit of P400 in the Prepaid Interest Expense account. 3. Analysis of the transactions for the year discloses the following:a. On February 29, received P25,000 6% note due October 29, 2005 from Jeffersonwhose trade account was past due. On the same…