Excom sells radios and each unit carries a two-year replacement warranty. The cost of repair defects under the warranty is estimated at 5% of the sales price. During September, Excom sells 157 radios for $53 each. One radio is actually replaced during September. For what amount in September would Excom debit Product Warranty Expense? a.$26 b.$53 c.$416 d.$4,082

Q: 6) R. Milton Products Inc. generated sales for the current month of 200 units at $225 each, subject…

A: This question deals with the preparation of journal entry for sales , sales tax and warranty…

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: Ecco Company sold $150,000 of kitchen appliances with six-month warranties during September. The…

A: Journal entry:   It is a systematic record of a financial transaction of an organization recorded in…

Q: Blake Department Store sells television sets with one-year warranties that cover repair and…

A: Formula: Total sales revenue = Number of units x Sales price per unit

Q: Barkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 22,000…

A: A) Interest expense = Note payable x interest rate % x period                            = ($22,000…

Q: monthly sales are 480,000 Warranty costs are estimated at 6% of monthly sales. Warranties are…

A: Warranty expense payable is considered as liability that is payable in near future. The company has…

Q: $143,000 of kotchen appliances with six-month warranties during September. The cost to repair…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: warranty

A: Provision for warranty = Number of units sold * Percentage of units returned for repair * Warranty…

Q: XYZ Computers manufactures and sells moblile tokens and radio token systems which include a 180 day…

A: Journal entries:   Journal entry records the financial transactions of a business in a journal book.…

Q: Socorro Company sells color television sets with a two-year repair warranty The sale price for each…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: Ecco Company sold $155,000 of kitchen appliances with six-month warranties durin September. The cost…

A: Warranty expense is the expected cost to be incurred for the repair or replacement of goods that…

Q: In 2013, Waldo Balloons sold 50 hot air balloons at $25,000 each. The balloons carry a 5-year…

A: Calculate the balance of warranty liability at the end:

Q: Blue Jay, Inc., manufactures and sells computer monitors with a three-year warranty.Warranty costs…

A: Given information is: Blue Jay, Inc., manufactures and sells computer monitors with a three-year…

Q: Ecco Company sold $145,000 of kitchen appliances with six-month warranties during September. The…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: RTY Company sells 6,000 units of its product for $500 each during the year ending December 31, 2017.…

A: Total number of defected units expected for the year 2017 for which warranty claim arises = 6,000…

Q: Barkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 12,000…

A: Total sales value = 12000 treats x $3 per treat = $36,000 Amount of Short term Note payable =…

Q: A company sells its product subject to a warranty that covers the cost of parts for repairs during…

A: Warranty Liability: Estimated liability is an exact dollar amount of debt or obligation which is…

Q: LIhe tollowing intormation applies to the questions displayed below. On October 29, Lobo Co. began…

A: Answer are as follows

Q: Parker Manufacturing Co. warrants its products for one year. The estimated product warranty is 3% of…

A:

Q: Lacoste Inc. receives a 90 day 6% note receivable from a client for the repair of 5 sets of…

A: Note receivable amount (P) = P 25,000 Period = 90 days Period from 31 October to 31 December (D) =…

Q: Blake Department Store sells television sets with one-year warranties that cover repair and…

A: Formula: Total sales revenue = Sales units x sales price per unit

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…

Q: During Year 2, Going-Going-Gone sold 100 hot air balloons for $4,000 each. The balloons carry a…

A: Estimated repair cost = Total ales x 4% = (100 x $4,000) x 4% = $16,000

Q: East Corp. manufactures stereo systems that carry a two-year warranty against defects. Based on past…

A: Warranty expense means where the customer has given an option to repair the goods if some defect…

Q: Excom sells radios, and each unit carries a two-year replacement warranty. The cost repair defects…

A: EXPLANATION A replacement indicates that the originally sold radio was scrapped  and completely…

Q: Ecco Company sold $150,000 kitchen appliances with six-month warranties during September. The cost…

A: Journal Entry for Estimated Warranty Expense :  Sep-30 Warranty Expenses A/c Dr $9000       To…

Q: Hall Company sells merchandise with a one-year warranty. In the current year, sales consist of 2,105…

A: The warranty expense refers to the cost expected to be incurred for repair or replacement after the…

Q: Crane Company sells automatic can openers under a 75-day warranty for defective merchandise. Based…

A: The warranty Expenses are estimated on the basis of past experience for defective units.

Q: Blake Department Store sells television sets with one-year warranties that cover repair and…

A: The warranty liability account is made by the company to record the estimated expense related to…

Q: Blast sells portable CD players and each unit carries a one-year replacement warranty.  The cost of…

A: Warranty expense is the amount the company recognizes in the profit and loss in order to fulfill the…

Q: A company restores and resells notebook computers. It originally acquires the notebook computers…

A: Warranty is estimated at $26,500 ($530,000*5%) On December 31.

Q: Excom sells radios and each unit carries a two-year replacement warranty. The cost of repair defects…

A: Sales = 110*$40 Sales = $4,400

Q: October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-day…

A: Warranty expense refers to the expense which is linked with the repair of defective product, refund…

Q: Sea Port Company sells a product that carries a 60-day unconditional warranty against product…

A: Warranty cost is the cost associated with the commitment of manufacturer to repair a product.

Q: Listed below are a few transactions and events of Maxum Company. 1. Employees earn vacation pay at a…

A: a) & b)

Q: Fantastic Co. sold $150,000 of kitchen appliances during August under a six month warranty. The cost…

A: In an accounting cycle, journal entry can be defined as the process of systematically recording all…

Q: Puzzles Company sells merchandise with a 1-year warranty. In Year 1, sales consist will average $16…

A: Provision for warrenty expense is calculated on the estimated number repair during the year.

Q: B) Warranties   Presley Company sells a product that includes a one-year warranty on parts and…

A: Introduction Warranty expenses: Warranty is assurance that the manufacturer of the product will…

Q: Q3- On December 1, Aramex Company introduces a new product that includes a one-year warranty on…

A: Warranty expense is the obligation of the company that can arise in the future.

Q: Ace Appliances Inc. offers a 12-month warranty on all its appliances. Ace Appliances estimates that…

A: Adjusted Warranty Liability = Average cost per warranty claim * Expected number of appliance require…

Q: Barkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 21,000…

A: Notes are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: Davao Company prepares quarterly interim financial reports. The entity sells electrical goods and…

A: Given data: Sales in the first quarter = P10,000,000 Sales in the second quarter = P15,000,000…

Q: Hadley Industries warrants its products for one year. The estimated product warranty expense is 4%…

A: Estimated warranty liability = 4% of sales                                            = $210000 x 4%…

Q: Borden Inc. sells televisions and other electronics. The company sells televisions that come with a…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: A company sells its products subject to a warranty that covers the cost of parts for repairs during…

A: Warranty expenses = Sales for June x estimated Warranty costs  % = $450,000 x 6% = $27,000

Q: Anderson's Accommodating Automobiles sells used cars. In order to incentivize sales, it offers a 3…

A: Adjusting journal entry :- Warranty Liability A/c          Dr      $1.75 million           To Cash…

Q: Excom sells radios and each unit carries a two-year replacement warranty. The cost of repair defects…

A: The cost of a company's or manufacturer's promise to fix or replace a product if it fails to perform…

Q: Back in Time Inc. warrants its products for one year. The estimated product warranty is 6.5% of…

A: Warranty liability at March 31 = Sales x 6.5%