please answer all Problem 3-2 (AIICPA Adapted)In 2020, Dare Company began selling a new calculator that carried a two-year warrantyagainst defects.The entity projected the estimated warranty cost as a percent of sales.First year of warranty4%Second year of warranty10%Sales and actual warranty repairs were:20202021Sales5,000,000 9,000,000Actual warranty repairs200,000560,000Required:1. Prepare journal entries in connection with the warranty using the "expense asincurred" approach.2. Prepare journal entries in connection with the warranty using the "accrual" approach.3. Determine the estimated warranty liability on December 31, 2021.4. Analyze the estimated warranty liability account to ascertain if adjustment isnecessary. The sales and warranty repairs are made evenly during the year.5. Prepare the adjustment to correct the estimated warranty liability on December 31,2021.

(1) As Per Expense as incurred approach, expense should be recognise in the books of account as and…

Problem 3-2 (AICPA Adapted) In 2020, Dare Company began selling a new calculator that carried a two-year warranty against defects. The entity projected the estimated warranty cost as a percent of sales. First year of warranty 4% Second year of warranty 10%

Problem 3-2 (AICPA Adapted) In 2020, Dare Company began selling a new calculator that carried a two-year warranty against defects. The entity projected the estimated warranty cost as a percent of sales. First year of warranty 4% Second year of warranty 10%

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

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 14P: Assurance-Type Warranty Clean-All Inc. sells washing machines with a 3-year assurance-type warranty....

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

please answer all

Problem 3-2 (AIICPA Adapted)
In 2020, Dare Company began selling a new calculator that carried a two-year warranty
against defects.
The entity projected the estimated warranty cost as a percent of sales.
First year of warranty
4%
Second year of warranty
10%
Sales and actual warranty repairs were:
2020
2021
Sales
5,000,000 9,000,000
Actual warranty repairs
200,000
560,000
Required:
1. Prepare journal entries in connection with the warranty using the "expense as
incurred" approach.
2. Prepare journal entries in connection with the warranty using the "accrual" approach.
3. Determine the estimated warranty liability on December 31, 2021.
4. Analyze the estimated warranty liability account to ascertain if adjustment is
necessary. The sales and warranty repairs are made evenly during the year.
5. Prepare the adjustment to correct the estimated warranty liability on December 31,
2021.

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