SP Factory provides a 2 year warranty with one of its products which was first sold in 2019. In that year SP Factory spent P700, 000 servicing warranty claims. At year end, SP Factory, estimates that an additional P400, 000 will be spent in the future to service warrant claims related to 2019 sales

Q: A new product introduced by Beauty Promotions carries a two-year warranty against defects. The…

A: The warranty liability is the expense due as per estimation but not demanded by customer yet.

Q: (a), assuming that in addition to the assurance warranty, Crane sold an extended warranty…

A: Solution:- a). Repeat the requirements for (a), assuming that in addition to the assurance warranty,…

Q: During 2021, JJJ Co. introduced a new line of machines that carry a three-year warranty against…

A: Solution:- Calculation of the amount should JJJ report as a liability at December 31, 2023 as…

Q: Kikiam Company sells televisions at an average price of P19,000 and also offers to each customer a…

A: Warranty means where the company is undertaking to make good the loss which has been incurred due to…

Q: Electro Company gives warranties at the time of sale to purchasers of its product. The entity…

A: A warranty refers to a written guarantee which is issued to a purchaser by the manufacturer of a…

Q: In 2020, Carpenter Inc. sells a product that carries a separate, three-year warranty for parts and…

A: The expense that a company plans or already expended for the repair and replacement of items that…

Q: On August 1, 2019, Pereira Corporation has sold 1,600 Wiglows to Mendez Company at $450 each. Mendez…

A: Unearned warranty revenue on December 31, 2019 = $19,200*5/12…

Q: In 2020, Eastern Appliance Manufacturing introduced a fully automatic washing machine with dryer.…

A: Warranty means where the company is undertaking to make good the loss which has been incurred due to…

Q: On January 2, 2020, Culver Company sells production equipment to Fargo Inc. for $ 48,000. Culver…

A: Equipment has a 2-year warranty assurance. So the estimated warranty for 2021 will also be recorded…

Q: On January 2, 2020, Crane Company sells production equipment to Fargo Inc. for $46,000. Crane…

A: Journal: Recording of a business transactions in a chronological order.

Q: Bull has a one-year product warranty on selected items in its product line. The estimated warranty…

A: Estimated warranty liability 2021 = P 416000 Warranty claims honored 2021 = P 416000 Estimated…

Q: sparkling water inc. had a total sales of 3,000,000 for 2019. this amount includes 150,000 relating…

A: Net sales =  total sales - sales of extended service-type warranty = 3000000 - 150000 = 2,850,000

Q: During 2019, Lawton Company introduced a new line of machines thatcarry a 3-year assurance-type…

A: Warranty is a form of assurance given by the seller of the goods to the customer that if there is…

Q: On January 2, 2020, Crane Company sells production equipment to Fargo Inc. for $46,000. Crane…

A: Note: Amount for warranty services is not given separatly in the question. So we are taking the…

Q: Starting 2019, every sale of the main product of Amongus Company will include a three-year warranty.…

A: Warranty is a kind of contract between the buyer and seller under which seller promises to repair or…

Q: The Richards Company paid for a five-year extended warranty on all of their equipment on March 1,…

A: If any warranty charges has been paid in advance , we need to write that expenditure in proportion…

Q: On January 2, 2020, Monty Company sells production equipment to Fargo Inc. for $47,000. Monty…

A:

Q: Kohl Co. provides warranties for many of its products. The January 1, 2019, balance of the Estimated…

A: Warranty Expenses is computed by multiplying the Sales amount into the Warranty provision.

Q: On April 1, 2019 SOMETHING Company began offering a new product for sale under a one-year warranty.…

A: A liability account that reports the estimated amount that a company will have to spend to repairs…

Q: What amount should be reported as warranty liability as of December 31, 2019?

A: Whenever a company makes sales with a warranty, then the company needs to recognize warranty…

Q: Raya Company offers a 3-year warranty on its products. Raya estimated warranty costs to be 5% of…

A: The warranty Expenses are estimated on the basis of sales revenue earned during the period.

Q: Celopatra Corporation introduced a new line of home shades in 2021 that carry a two-year warranty…

A: Note: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…

Q: Al Jabel Corporation sells WIFI speakers and offers 2-year warranty contract to customers. During…

A: A journal entry is used to record a business transaction in a company's accounting records. A…

Q: During 2021, Eaton Co. introduced a new product carrying a two-year warranty against defects. The…

A: The liabilities are the amount due to be paid in near future.  The warranty Expenses are estimated…

Q: During 2019, Lawton Company introduced a new line of machines that carry a 3-year assurance-type…

A: Warranty is a type of assurance that is provided by the seller of the goods to the buyer that if…

Q: Al Jabel Corporation sells WIFI speakers and offers 2-year warranty contract to customers. During…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: XYZ Equipment Company sells computers for OMR1,500 each and also gives each customer a 2-year…

A: Journal entries  2018, Cash(750 * 1500) Dr. 1125000 Sales revenue           Cr.  1125000 (Being…

Q: Best Appliance Store offers a two-year warranty on all appliances sold. The company estimates that…

A: Formula: Sales revenue = Sales price per unit x Sales units.

Q: On September 1, 2019, Carolina Electronics Company has 1,150 Blu-ray players ready for sale. On…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: In 2020, Eastern Appliance Manufacturing introduced a fully automatic washing machine with dryer.…

A: Warranty means where the company is undertaking to make good the loss which has been incurred due to…

Q: On January 1,2019, ABC Company introduced a new line of product that carries a 3 year warranty…

A: Warranty is a form of assurance that is being given by the seller to the customer that in case…

Q: Erafone provides a 2-year warranty with one of its products which was first sold in 2020. Erafone…

A: Warranty is a present obligation that arises from past events and their settlement has required an…

Q: During 2020, Ward Company introduced a new product carrying a three-year warranty against defects,…

A: As the straight-line method is used of recognizing warranty revenue, it shall be equally recognized…

Q: LP Corporations sells smart televisions. The corporation also offers its customers a 2 year warranty…

A: Warranty contract includes the promise in a contract from one party to another that the facts and…

Q: that requires the entity to replace defective parts and Sony Company sells stereos under a 2-year…

A:

Q: Proctor provides 1 year warranty on every chair it produces and sells. On 12-31-19, proctor reported…

A: Calculate excess amount recognized as follows:

Q: Kikiam Company sells televisions at an average price of P19,000 and also offers to each customer a…

A: Warranty means where the company is undertaking to make good the loss which has been incurred due to…

Q: On September 1, 2019, Carolina Electronics Company has 1,160 Blu-ray players ready for sale. On…

A: Warranty cost is an form of expense related to a defective product repair , faulty goods,…

Q: During 2019, Bonita Industries introduced a new line of machines that carry a three-year warranty…

A: The amount that is expected to be incurred for replacement or damage of goods is considered as…

Q: Sunnyvale Computer Company sells a line of computers that carry a six-month warranty. Customers are…

A: Warranty is the promise made to the buyer of the product by the seller to repair or replace the…

Q: How much is the Unearned Revenue from Warranty Contracts at December 31, 2021?

A: For the year 2020: Sale of the washing machine with dryer sold = 1,000 * 37,500 = P37,500,000…

Q: On January 2, 2020, Whispering Company sells production equipment to Fargo Inc. for $ 48,000.…

A: Warranty expense of $930 incurred in 2020 is related to 2020 sales, so it is the expense of 2020.…

Q: On January 1,2019, ABC Company introduced a new line of product that carries a 3 year warranty…

A: Warranty is the form of assurance being given by the seller to the buyer that in case product will…

Q: On January 1,2019, ABC Company introduced a new line of product that carries a 3 year warranty…

A: Warranty is a form of assurance provided by the seller to the buyer that in case product will have…

Q: On January 23, 2019, Zenox Company sold $105,000 of furniture on account that had a cost of $82,000.…

A: Account Titles and Explanation  Debit   Credit  Warranty Expense ($ 82,000 X 2%)  $ 16,400…

Q: Company gives warranties at the time of sale to purchasers of its product.  The entity undertakes to…

A: Accounting is essential to operating a company since it allows businesses to track income and…

Q: Prepare 2020 entries for Larkspur assuming that the warranties are not an integral part of the sale…

A: Sales of Rollomatic  = 600 × $5,800  = $3,480,000

Q: 1. On January 1,2019, QWERTY Company introduced a new line of product that carries a 3 year warranty…

A: Hi student Since there are multiple questions, we will answer only first question.  Warranty is a…

Q: On January 2, 2020, Crane Company sells production equipment to Fargo Inc. for $46,000. Crane…

A: Note: Amount for warranty services is not given separatly in the question. So we are taking the…

Q: On January 2, 2020, Grando Company sells production equipment to Fargo Inc. for $50,000. Grando…

A: a. Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020…