[The following information applies to the questions displayed below.] Hitzu Company sold a copier (that costs $6,500) for $13,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 4% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $138 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copier. 1. How much warranty expense does the company report for this copier in Year 1? 2. How much is the estimated warranty liability for this copier as of December 31 of Year 1? 3. How much is the estimated warranty liability for this copier as of December 31 of Year 2? 4. Prepare journal entries to record (a) the copier's sale; (b) the adjustment to recognize the warranty expense on December 31 of Year 1; and (c) the repairs that occur on January 5…

[The following information applies to the questions displayed below.] Hitzu Company sold a copier (that costs $6,500) for $13,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 4% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $138 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copier. 1. How much warranty expense does the company report for this copier in Year 1? 2. How much is the estimated warranty liability for this copier as of December 31 of Year 1? 3. How much is the estimated warranty liability for this copier as of December 31 of Year 2? 4. Prepare journal entries to record (a) the copier's sale; (b) the adjustment to recognize the warranty expense on December 31 of Year 1; and (c) the repairs that occur on January 5…

Wally Co. began selling merchandise on November 1, 2022. The company offers a 50-day warranty for defective merchandise. Based on prior experience with similar merchandise, Wally Co. predicts that 2.80% of the units sold will encounter a fault within the warranty period, with a replacement or repair of a damaged unit costing an average of $30. In November, Wally Co. sold 25,000 units and 400 defective units were returned. In December, Wally Co. sold 32,000 units and 544 defective units were returned. The actual cost of replacing the defective units was $38,500. Prepare a journal entry to accrue for the estimated warranty costs for the November and December sales at December 31, 2022. Prepare one summary journal entry at December 31, 2022, to record the cost of replacing the defective merchandise returned during November and December. What amounts will be included in Wally Co.’s 2022 income statement and balance sheet at December 31, 2022, with regard to the warranty? Show steps…

FORD, INC., a dealer of household appliances, sells washing machines at an average price of P8,100.  The company also offers to each customer a separate 3-year warranty contract for P810 that requires the company to provide periodic maintenance services and to replace defective parts.  During 2019, FORD sold 300 washing machines and 270 warranty contracts for cash.  The company estimates that the warranty costs are P180 for parts and P360 for labor.   Assume sales occurred on December 31, 2019.  FORDS’s policy is to recognize income from the warranties on a straight-line basis.  In 2020, FORD incurred actual costs relative to 2019 warranty sales of P18,000 for parts and P36,000 for labor.   What liability relative to the 2019 warranties would appear on the December 31, 2020, statement of financial position and how would it be classified?                         Current            Noncurrent Group of answer choices P145,800 P 0 P72,900 P145,800 P72,900 P72,900 P145,800 P72,900

Windsor Company sold 420 copy-making machines in 2020 for $2,900 apiece for cash, together with a one-year warranty. Repair costs on each machine are estimated to be $320 during the warranty period. Prepare entries to record the sale of the copiers and the related warranty costs, assuming that the accrual method is used. Actual warranty costs (inventory) incurred in 2020 were $24,200. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Cash (To record sales) (To record warranty costs incurred) Debit Credit

Belarmino COMPANY sells its products in expensive, reusable containers.  The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery.  Belarmino accounts for the containers not returned within the time limit as being sold at the deposit amount.  Information for 2019 is as follows:               Containers held by customers at             December 31, 2018,             from deliveries in:                  2017    85,000                                                             2018    240,000           325,000             Containers delivered in 2019                                      430,000             Containers returned in 2019             from deliveries in:                  2017    57,500                                                             2018    140,000                                                             2019.   157,000           354,500             How much…

Popcorn Company manufactures and sells commercial ovens. It is currently running a promotion in which it pays a $750 rebate to any customer that purchases an oven from one of its participating dealers. The rebate must be returned within 60 days of purchase. Given its historical experience and the ease of obtaining a rebate, Popcorn expects all qualifying customers will receive the rebate.   Required: Prepare the journal entry to record the sale of an oven to a participating dealer for $8,000.

Jo Angel Company sells its products in reusable, expensive containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery. Jo Angel accounts for the container not returned within the time limit as being retired by sale at the deposit amount. Information for 2020 is as follows: Containers held by customers at December 31, 2019, from deliveries in: 2018    5,000,000 2019    6,000,000 Containers delivered in 2020    9,000,000 Containers returned in 2020 from deliveries in: 2018    4,000,000 2019    4,500,000 2020    3,500,000 What amount should Jo Angel report as a liability for returnable containers at December 31, 2020? Group of answer choices 7,000,000 8,000,000 0 5,500,000

Check my work AM [The following information applies to the questions displayed below.] On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $16 and its retail selling price is $90 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 8% of dollar sales. The following transactions and events occurred. Ya M 2016 Nov. 11 Sold 60 razors for $5,400 cash. Tue 30 Recognized warranty expense related to November sales with an adjusting entry. 9 Replaced 12 razors that were returned under the warranty. 16 Sold 180 razors for $16,200 cash. 29 Replaced 24 razors that were returned under the warranty. 31 Recognized warranty expense related to…