Jonus Bike Inc., manufactures and sells high-end bicycles. Each bicycle that the company sells comes with a 5 year unlimited warranty. Based on past experience, Jonus' accountant estimates that for every $3,000 worth of sales, Jonus will have to pay out $78 in warranty costs. Do not enter dollar signs or commas in the input boxes. a) This year, Jonus Bike Inc. had sales of $1,080,000. First, calculate the estimated warranty costs based on the accountant's analysis. Date Account Title and Explanation Debit Credit Dec 31 Answer Answer Answer Answer Record warranty liability b) As part of the warranty program, Jonus had to make repairs to the seat post of 21 bicycles that he sold. Jonus spent $1,390 cash. Prepare the journal entry to record this transaction. Date Account Title and Explanation Debit Credit Dec 31 Answer Answer Answer Answer Record warranty repairs
Jonus Bike Inc., manufactures and sells high-end bicycles. Each bicycle that the company sells comes with a 5 year unlimited warranty. Based on past experience, Jonus' accountant estimates that for every $3,000 worth of sales, Jonus will have to pay out $78 in warranty costs. Do not enter dollar signs or commas in the input boxes. a) This year, Jonus Bike Inc. had sales of $1,080,000. First, calculate the estimated warranty costs based on the accountant's analysis. Date Account Title and Explanation Debit Credit Dec 31 Answer Answer Answer Answer Record warranty liability b) As part of the warranty program, Jonus had to make repairs to the seat post of 21 bicycles that he sold. Jonus spent $1,390 cash. Prepare the journal entry to record this transaction. Date Account Title and Explanation Debit Credit Dec 31 Answer Answer Answer Answer Record warranty repairs
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 10E
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Jonus Bike Inc., manufactures and sells high-end bicycles. Each bicycle that the company sells comes with a 5 year unlimited warranty. Based on past experience, Jonus' accountant estimates that for every $3,000 worth of sales, Jonus will have to pay out $78 in warranty costs.
Do not enter dollar signs or commas in the input boxes.
a) This year, Jonus Bike Inc. had sales of $1,080,000. First, calculate the estimated warranty costs based on the accountant's analysis.
| Date | Account Title and Explanation | Debit | Credit |
| Dec 31 | Answer | Answer | |
| Answer | Answer | ||
| Record warranty liability |
b) As part of the warranty program, Jonus had to make repairs to the seat post of 21 bicycles that he sold. Jonus spent $1,390 cash. Prepare the
| Date | Account Title and Explanation | Debit | Credit |
| Dec 31 | Answer | Answer | |
| Answer | Answer | ||
| Record warranty repairs |
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