Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience. The warranty expense reported for the copier in year 1.

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Answer 1

Question

Chapter 9, Problem 12E

1.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The warranty expense reported for the copier in year 1.

2.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The estimated warranty liability on December 31, year 1.

3.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The estimated warranty liability on December 31, year 2.

4.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The Journal entries to record the given transactions.

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Required information [The following information applies to the questions displayed below.] Hitzu Company sold a copier (that costs $4,500) for $9,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 6% 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 $108 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copier. Analyze each of the following transactions: (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 of Year 2. Show each transaction's effect on the accounting equation-specifically, identify the accounts and amounts (including+ or -) for each. (Enter all amounts as positive value.) Date August 16 August 16 December 31 January 5 Assets 4…

Required information (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 regquired 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…

Oven Roasted sold $321,000 of consumer electronics during July under a two-year warranty. The cost to repair defects under the warranty is estimated at 5% of the sales price. On November 11, a customer was given $97 cash under terms of the warranty. Question Content Area a. Provide the journal entry for the estimated warranty expense on July 31 for July sales. If an amount box does not require an entry, leave it blank. Date Account Debit Credit July 31 Feedback Area Feedback Question Content Area b. Provide the journal entry for the November 11 cash payment. If an amount box does not require an entry, leave it blank. Date Account Debit Credit Nov. 11

Answer 2

Question

Chapter 9, Problem 12E

1.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The warranty expense reported for the copier in year 1.

2.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The estimated warranty liability on December 31, year 1.

3.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The estimated warranty liability on December 31, year 2.

4.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The Journal entries to record the given transactions.

Expert Solution & Answer

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Answer 3

Question

Chapter 9, Problem 12E

1.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The warranty expense reported for the copier in year 1.

2.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The estimated warranty liability on December 31, year 1.

3.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The estimated warranty liability on December 31, year 2.

4.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The Journal entries to record the given transactions.

Expert Solution & Answer

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Answer 4

Question

Chapter 9, Problem 12E

1.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The warranty expense reported for the copier in year 1.

2.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The estimated warranty liability on December 31, year 1.

3.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The estimated warranty liability on December 31, year 2.

4.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The Journal entries to record the given transactions.

Expert Solution & Answer

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Answer 5

Chapter 9, Problem 12E

1.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The warranty expense reported for the copier in year 1.

2.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The estimated warranty liability on December 31, year 1.

3.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The estimated warranty liability on December 31, year 2.

4.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The Journal entries to record the given transactions.

Answer 6

Chapter 9, Problem 12E

1.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The warranty expense reported for the copier in year 1.

Answer 7

Chapter 9, Problem 12E

1.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The warranty expense reported for the copier in year 1.

Answer 8

2.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The estimated warranty liability on December 31, year 1.

Answer 9

2.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The estimated warranty liability on December 31, year 1.

Answer 10

3.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The estimated warranty liability on December 31, year 2.

Answer 11

3.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The estimated warranty liability on December 31, year 2.

Answer 12

4.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The Journal entries to record the given transactions.

Answer 13

4.

To determine

Concept Introduction:

Warranty liability is an obligation to fix a product or service that has failed to perform as expected. The seller reports the estimated warranty expense in the period when the revenue from the sale of the product is reported. The warranty liability must be reported even though future payment on the warranty is uncertain. This is because warranty liability is probable and estimated using experience.

The Journal entries to record the given transactions.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 9 - Prob. 1QS Ch. 9 - Prob. 2QS Ch. 9 - Prob. 3QS Ch. 9 - Prob. 4QS Ch. 9 - Prob. 5QS Ch. 9 - Prob. 6QS Ch. 9 - Prob. 7QS Ch. 9 - Prob. 8QS Ch. 9 - Prob. 9QS Ch. 9 - Prob. 10QS

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Chapter 9 Solutions