GPS Company estimated annual warranty expense at 8% of net sales. The following data relate to the current year: Warranty liability, January 1: before adjustment - 100,000 debit. After adjustment - 540,000 credit. What is the amount of net sales for the current year? * a. 8,000,000 b. 6,750,000 c. 5,500,000

Q: On November 1, Jasper Company loaned another company $270,000 at a 8.0% interest rate. The note…

A: Interest revenue reported in first year = Amount of loan x rate of interest x No. of months / 12

Q: Honeycomb Company issued a note receivable to a customer on September 1. The face value of the note…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: On 30 June 2009, M Ltd estimates that it will incur warranty costs of $150 000 in the next financial…

A: Solution Concept Warranty expense and liability               The warrantty liability is the…

Q: Urban Inc. has sales of $45,000 during January and a 90 day warranty on all products sold. It is…

A: Warranty is a selling term provided by the seller to the buyer to repair or replace the goods sold…

Q: Harbour Company disclosed estimated product warranty payable for comparative years as follows:…

A: Warranty expense is the cost related to repairs, replacement or any payment to the user for product…

Q: entry to record the warranty liability

A: Warranty liability is recorded by debiting warranty expense and crediting provision for 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: S11-5 Determining current portion of long-term note payable On January 1, Irving Company purchased…

A: Long-term note payable :               A negotiable instrument drawn by the purchaser party to the…

Q: Shown below are selected transactions of Gulf Corp. during the month of December 2011. Dec. 1…

A: General journal entries  Date Particulars Dr.$ Cr.$ 1…

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…

Q: A company estimates that warranty expense will be 3% of sales. The company's sales for the current…

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

Q: White Hat Digital, Inc. starts the year with a credit balance of $3,500 in its Estimated Warranty…

A: The estimated warranty expenses are 2% of $224000. Opening warranty balance was $3500 and settlement…

Q: At 30 June 20X2 a company had $1m 8% loan notes in issue, interest being paid half-yearly on 30…

A: We have the following information: At 30 June 20X2 a company had $1m 8% loan notes in issue,…

Q: Nelsie Corporation has an outstanding 60- day 6% note receivable armounting to P 15,000 dated…

A: Accrued interest on December 31 should be credited to the interest income and 9 should be debited.…

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: Assume that on 15th January 2019 Mustafa and Sons LLC sold OMR 15000 goods to Ibri traders on…

A: The maturity value is the amount to be paid at the time of maturity of note note receivable by the…

Q: During June, Vixen Company sells $850,000 in merchandise that has a one year warranty. Experience…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: ABC Company received a four-month note receivable in the amount of P74,000,000 on September 1. The…

A: Introduction: As per accrual concept any income or expenses shall be recognized only when they are…

Q: Pink Company had a warranty liability of P350,000 at the beginning of current year and P310,000 at…

A: The warranty expense is the expense estimated on the basis of previous years warranty expenses on…

Q: Nance Company estimates its annual warranty expense as 2% of annual net sales.  The following data…

A: Warranty expenses are the expenses incurred on replacement, repair or compensation paid to the user…

Q: on June 8th Alton Co issued in 62700 8% 120 Day note payable to seller Co. Assume that the fiscal…

A: Notes payable is a negotiable instrument issued by a promisor that includes a promise to pay a…

Q: Use the information for the next two (2) questions. Bold Company estimated annual warranty expense…

A: Introduction: Warranty liability means repairing the products which was sold earlier. Warranty…

Q: The beginning warranty liability was $25,000. Sales of $5,000,000 were made, and 1% of sales is the…

A: Estimated warranty cost = 1% of sales  = $5,000,000 x 1% = $50,000

Q: At 30 June 20X2 a company had $1m 8% loan notes in issue, interest being paid half-yearly on 30…

A: We have the following information: At 30 June 20X2 a company had $1,000,000 8% loan notes in issue…

Q: Relay Company estimated that annual warranty expense at 2% of annual net sales. The net sales for…

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: KOREA Company prepares quarterly interim financial reports in accordance with IAS 34, Interim…

A: Warranty expense refers to the expense or the cost which business is expected to or already has…

Q: At year end, Rei company issued a P2,000,000 face amount note payable in exchange for services…

A: Note payable ::::P2,000,000.... Interest expenses::2000000*3%*9/12 months=P45,000...... The compound…

Q: Pickett Company received a 90 day, six percent note receivable for $20,000 on November 1. How much…

A: Note receivable amount = $20,000 Due period = 90 days Note received date = November 1

Q: PHAGE COMPANY estimates its annual warranty expense at 4% of net sales. The following balances are…

A: Estimated warranty expenses = sales x 4% = 1500000 x 4% = 60,000

Q: On June 1, Davis Inc. issued an $84,000, 5%, 120-day note payable to Garcia Company. Assume that the…

A: Answer: The exact answer is $1,061 . So the nearest option to $1,061 is option D - $1,050 .

Q: Charm Company estimates its annual warranty expense as 2% of annual net sales. The following data…

A: Solution: Warranty expense for 2019 = Net Sales * 2% Net sales - P3,200,000 Warranty expense for…

Q: A company is holding a $6,000, 90-day, 6% note receivable, dated December 1.  The entry to record…

A: The entry to record accrued interest at the end of its fiscal year is as follows:- Accrued Interest…

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

A: Estimated warranty expenses = Sales x 4% = $210,000 x 4% = $8,400

Q: Slack Inc. borrowed $320,000 on April 1. The note requires interest at 12% and principal to be paid…

A: Accrual basis: Accrual basis is a method of accounting. In this method recording of revenues are…

Q: Carpenter Inc. estimates warranty expense at 3% of sales. Sales during the year were $8 million and…

A: Estimated warranty expenses are calculated on the basis of estimation of percentage on sales and…

Q: 2% of annual net sales

A: Warranty expense refers to the cost that the business expects for repair and maintenance of goods…

Q: Villa company estimates its annual warranty expense at 8% of net sales.  The following data relate…

A: Total warranty expenses = warranty liability balance after adjustment + debit warranty liability…

Q: Dagupan Company prepares quarterly interim

A: Total warranty = warranty claim% * first quarter scales + second quarter scales = 10% * P 10000000 +…

Q: Accrued Interest Payable Compute the interest accrued on each of the following notes payable owed…

A: Accrued expenses: Accrued expenses are the expenses that have been incurred but have not been paid…

Q: Gray Inc. lends White Ltd. $60,000 on April 1, accepting a 6-month, 4.5% interest note. Interest is…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: 10) During its first year of operations Keene Limited had sales of $76,500. The company offers a 2-…

A: At year end, Estimated warranty cost- actual warranty cost will transfer to revenue account & if…

Q: What is the warranty expense for the current year? What is the warranty liability at the beginning…

A: A warranty liability is the amount that the company will have to spend to repair or replace its…