Quantas Industries sold $325,000 of consumer electronics during July under a nine-month warranty. The cost to repair defects under the warranty is estimated at 4.5% of the sales price. On November 11, a customer was given $220 cash under terms of the warranty.Provide the journal entry for (a) the estimated warranty expense on July 31 for July sales and (b) the November 11 cash payment.

Q: During 2005, Cory Company introduced a new line of machines that carry a two-year warranty against…

A: The warranty Expenses is recognized and recorded at the time when the sales are made.

Q: Haeir Co. sells washing machines that carry a three-year warranty against manufacturer's defects.…

A: calculation warranty expenses and warranty liabilities are as follows

Q: A company sold 10,000 TVs in July and estimates warranty expense for these TVs to be $25,000. During…

A: Warranty expenses: Warranty expense is the cost that a business expects to or has already incurred…

Q: Ecco Company sold $136,000 of kitchen appliances with six-month warranties during September. The…

A: Estimated warranty expenses are based on the rate of warranty expense on the sales price. So…

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

A: Answer are as follows

Q: n December 1, Sheridan Company introduces a new product that includes a one-year warranty on parts.…

A: Solution:  estimated warranty cost = Units sold * 5% *90 = 1400*5%*90  = $6,300

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: During 2017, Alaa Company sold 600 TV for $500 each. The sold items include a one-year warranty. The…

A: It is the provision created by the company for the repair of defective goods that is return by the…

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: 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: Following are the five events of DDT CORPORATION: a. On December 31, purchased a machinery at a…

A: Current Liabilities: Current liabilities are the short term liabilities which  are due within twelve…

Q: Yummy sold $656,000 of consumer electronics during July under a one-year warranty. The cost to…

A: Contingent liability may or may not arise on the occurrence of future events. Warranty liability is…

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: 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: Pink Pty Ltd. sold $110,000 of cosmetic products during July under a three-month warranty. The cost…

A: Estimated warranty expenses = $110,000 x 2 5% = $2,750 $140 is not estimated warranty expense, it is…

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: Ecco Company sold $158,000 of kitchen appliances with six-month warranties during September. The…

A: The estimated warranty expense is $7,900 ($158,000*5%) and out of which $226 ($140 + $86) worth of…

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

A: Answer -    PART 1 - No Date General journal Debit Credit           1 Nov-11 Cash   $…

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

A: Warranty expenses on Nov 30  =  $ 4800 * 8% = $ 384 Warranty Liability on Dec 9 = 12 razors * $ 16 =…

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: EarlKeen Co. sold $260,000 of equipment during January under a one-year warranty. The cost to repair…

A: Prepare the journal entry to record estimated warranty expense.

Q: Reliance Company manufactures and sells wireless video cell phones, which it guarantees for five…

A: Part1: Journal entries: Working: Estimated liability for product…

Q: Reliance Company manufactures and sells wireless video cell phones, which it guarantees for five…

A: Warranty expense can be defined as the expense that the company expects to generate or already…

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

A: Warranty Expense = Sales x estimated warranty expense percentage = $150,000*6% = $9,000

Q: Norton Company received a 90-day, 6% note for $300,000, dated May 12 from a customer on account.…

A: Norton Company    A 90-day, 6% note for $300,000, dated May 12 from a customer on account   (A) the…

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: What is the balance of the Estimated Warranty Liability account as of January 31?

A: The balance of the estimated warranty liability account will be calculated by drawing a ledger…

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: [The following information applies to the questions displayed below.] Hitzu Company sold a copier…

A: Journal entries refer to the process of inspecting and formulating all the transactions of a company…

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

A: Introduction: An income statement is a critical financial record for every company. It illustrates…

Q: Maas, Incorporated, sells washers and dryers that include a maximum one-year warranty covering…

A: Total estimated warranty liability = 2% * Net sales Total estimated warranty liability = 2% *…

Q: [The following information applies to the questions displayed below.] Hitzu Company sold a copier…

A: Warranty expenses are debited and are estimated as a percentage of dollar sales. The estimated…

Q: [The following information applies to the questions displayed below.] Hitzu Company sold a copier…

A: The question is based on the concept of Financial Accounting. As per the Bartleby guidelines we are…

Q: Cook-Rite sold $152,000 of consumer electronics during July under a one-year warranty. The cost to…

A: The warranty Expenses are estimated on the basis of past year experiences.

Q: Record these transactions in general journal form. Record any adjusting entries for interest in…

A: When a liability increases, the account is credited and when reduced the account is debited. When an…

Q: Oven Roasted sold $394,000 of consumer electronics during July under a two-year warranty. The cost…

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

Q: Quantas Industries sold $325,000 of consumer electronics during July under a nine-month warranty.…

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

Q: A company sold 10,000 TVs in July and estimates warranty expense for these TVs to be $25,000. During…

A: Warranty liability indicates the obligations of the company to either replace or repair the defected…

Q: Dagupan Company prepares quarterly interim

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

Q: Backpack Co. was organized to sell a single product that carries a 45-day warranty againstdefects.…

A: Warranty expense: It can be defined as the cost that is associated with the commitment of the…

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

A: Journal entry is a first step in recording accounting transaction in the books of the company. It…

Q: Fitzpatrick Co. sold $391,000 of equipment during January under a one-year warranty. The cost to…

A:

Q: Following are the five events of DDT CORPORATION: a. On December 31, purchased a machinery at a…

A: Long-term liabilities refers to those financial obligations of a company which have a due date of…

Q: Ecco Company sold $127,000 of ktchen appliances with six month warranties during September. The cost…

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

Q: Ecco Company sold $128,000 of kitchen appliances with six-month warranties during September. The…

A: Estimated warranty liability = 7% of sales                                            = $128000 x 7%…

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: 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: Cook-Rite Co. sold $512,000 of equipment during January under a two-year warranty. The cost to…

A: Product Warranty expense = Sales x % of estimated warranty = $512,000 x 5% = $25,600

Q: Oven Roasted sold $394,000 of consumer electronics during July under a two-year warranty. The cost…

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