PHE, Inc.estimates warranty expense at 2% of sales. Sales during the year were $4 million and warranty related cash expenditures were $34,000. What was the balance in the Warranty Liability account at the end of the year? Select one: O a. $56,000 O b. $34,000 c. $80,000 O d. $36,000 O e. $46,000
Q: The company sells on terms 2/10, net 30. Total sales for the year are P1,000,000, of which P100,000…
A: The average amount of account receivable is based on the customer who is paying early for grabbing…
Q: The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: 1.…
A: Post Closing Trial Balance - Post Closing Trial Balance is the trial balance after providing closing…
Q: Oman chromite company LLC had sales last year of OMR 500,000, including cash sales of OMR 208,000.…
A:
Q: • Allan Company had sales of $1,500,000 during 2021. Actual warranty costs during 2021 were $60,000.…
A: A warranty is a written guarantee that is given by the seller to the buyer for the product against…
Q: Oman chromite company LLC had sales last year of OMR 500,000, including cash sales of OMR 208,000.…
A: Accounts receivable = Credit Sales * Average collection period / 365
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: PIZZA Parlor Co had the following available information: Accounts receivable P200,000 Accounts…
A: Introduction: The current ratio is a liquidity ratio used to assess a company's ability to pay…
Q: Carpet Company had a balance of P800,000 in the warranty liability account on December 31, 2020. The…
A: Given: Warranty balance = P800,000 Warranty expenditure = P2,500,000 Sales = P40,000,000 Warranty…
Q: BC Corp. reported a P500,000 account receivable balance at the beginning of the calendar year. For…
A: It is the money due from the person to whom the service or goods are provided. It is also known as…
Q: What is LoGo's payables deferral period (DPO)?
A: Payables deferral period (DPO) = Accounts payable/Credit purchases per day It is the number of days…
Q: NYJ, Inc. borrowed $500,000 on November 1, 20X1, and signed a nine-month note bearing interest at…
A: The notes payable require the borrower company to pay interest expense. The interest expense is…
Q: At year-end, StickStick has cash of $ 22 comma 000$22,000, current accounts receivable of $ 80…
A: Calculate the receivables turnover ratio.
Q: Abaca Company's accounts receivable is P240,000 at the beginning of the year and 280,000 at the end…
A: 1. 6× means 6 times. Accounts Receivables turnover ratio is 6 times. 2. Total Sales…
Q: At year-end, Sample has cash of $8,000, current accounts receivable of $40,000, merchandise…
A: Average accounts receivables = (beginning balance+ending balance)/2 Average accounts receivables =…
Q: Assuming a 365-day year, how long (in average days) does the collectibles from customers stay as…
A: Assuming a 365-day year, how long (in average days) does the collectibles from customers stay as…
Q: Pink Company had a warranty liability of P350,000 at the beginning of current year and P310,000 at…
A: The warranty expense is the expense estimated on the basis of previous years warranty expenses on…
Q: On March 1, 20X1 ABC Co. assigned its P1,000,000 accounts receivable to B Bank in exchange for a…
A: Factoring: Factoring is a type of business loan in which the business organization sells its…
Q: At the beginning of July, Bartleby Graduate Inc. assigned P2,000,000 out of its P10,000,000…
A: Cash Remittance: A cash remittance is one in which the sender puts cash into the recipient's account…
Q: Company factored P6,000,000 of accounts receivable to a certain bank at the end of current year.…
A: Total Cost -: The Total Cost is the actual cost that occurred in the generation of a provided level…
Q: PIZZA Parlor Co had the following available information: Accounts receivable P200,000 Accounts…
A: A liquidity ratio that attempts to measure a firm's ability to pay short-term or one-year…
Q: Pepper, Inc. had the following receivable financing transactions in 2021: a) At the beginning of…
A: SOLUTION A JOURNAL IS AN OFFICIAL ACCOUNTING BOOK IN WHICH ALL BUSINESS TRANSACTIONS ARE RECORDED IN…
Q: Monmouth Limited has a December 31 year-end. On December 1, 2020 Monmouth had the following current…
A: Current Liabilities: It is the debt that a company owes which must be cleared within one year.
Q: The following transactions apply to Ozark Sales for Year 1: The business was started when the…
A: Financial statements are those statements which are prepared at the end of accounting period for the…
Q: Hanna Company reported warranty expense of P1,900,000 for the current year. The warranty liability…
A: Accounting: Accounting is the art of recording, classifying and summarizing in a significant…
Q: selected transactions (in BDT) occurred in the books of Shoilee and Company: Jan. 05 Sold 800 units…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Ammer Products has an average accounts payable balance of $850,000 and its annual cost of goods sold…
A: Deferrals: Deferrals are the revenues that are received but not earned, and expenses that are paid…
Q: At the beginning of the year, ABC's Accounts Receivable balance was $82,300. During the year ABC…
A: The account receivables are also known by the name of debtors. These are the values due to a firm on…
Q: ABC Company provided the following information on December 31, 2020: Note payable Trade 3,000,000…
A: Current liabilities are a company's short-term financial obligations that are due within one year or…
Q: PHAGE COMPANY estimates its annual warranty expense at 4% of net sales. The following balances are…
A: Estimated warranty expenses = sales x 4% = 1500000 x 4% = 60,000
Q: The financial statements of Danielle Manufacturing Company report net sales of $750,000 and accounts…
A: Accounts receivables turnover ratio refers to the efficiency ratio which measures the effectiveness…
Q: On October 1, a company borrowed $200,000 on a two-year, 12% note, with interest and principal to be…
A: Given: Principal = $200,000 Interest rate = 12% From Oct 1 to Dec 31 = 3 months
Q: On Jan 1, 20X4, ABC Corp sold goods and receive a 12% P300,000 note is due in 3 annual installments…
A: Interest income for the Year = Outstanding face value of the note x rate of interest x no. of…
Q: PHE, Inc.estimates warranty expense at 2% of sales. Sales during the year were $4 million and…
A: Balance of warranty expense = Estimated warranty liability - Cash expenditure
Q: Gandi brothers has DSO of 22 days and its annual sales on account are $7,665,000. Assume number of…
A: Days sales outstanding = 22 days Annual sales = $7,665,000 Number of days in a year = 365 days…
Q: The following transactions apply to Ozark Sales for Year 1: . The business was started when the…
A: Balance Sheet: It shows the financial position of an entity. It also shows whether an entity have…
Q: Dimagiba Company began operation at the beginning of 2021. During the year, it had cash sales of…
A: Gross profit on cash sales = 6875,000× 25/125 = 13,75,000
Q: Carpenter Inc. estimates warranty expense at 3% of sales. Sales during the year were $8 million and…
A: Estimated warranty expenses are calculated on the basis of estimation of percentage on sales and…
Q: 2% of annual net sales
A: Warranty expense refers to the cost that the business expects for repair and maintenance of goods…
Q: At the start of the period, the accounts payable balance was P75,000 and the unused supplies has a…
A: Accounts payable refers to the ledger that shows the amount of purchase made on credit and payment…
Q: EZ Wheels Corporation manufactures kick scooters. The company offers a one-year warranty on all…
A: Liability created during the year = Net Sales * 4% *30% = $2850 * 4% *30% = $34.20 million
Q: The following information pertains to Q Company: Trade accounts receivable, net of P10,000 credit…
A: Current receivables are those amounts which is payable within 12 months. These are amounts which…
Q: During 2008, Luciana Company introduced a new product carrying a two-year warranty against defects.…
A: Answer: 2, 200, 000 Explanation/ Computation: The warranty liability is a…
Q: ABC Corp had accounts receivable of P150,000 and allowance for bad debts of P12,000 at Jan 1. During…
A: Credit sales = P1,000,000 x 60% = P600,000
Q: On December 1, 2021, Wonder Company assigned P400,000 of accounts receivable to Woman Company as a…
A: Accounts receivable (AR) is the amount of cash yet to be received by a firm for products or services…
Q: The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: 1.…
A: Closing Entries - Closing entries are required to close the temporary accounts after making…
Q: The annual sales of a company are $235,000 including sales tax at 17.5%. Half of the sales are on…
A: We have the following information: The annual sales of a company are $235,000 including sales tax…
Q: NYJ, Inc. borrowed $800,000 on July 1, 20X1, and signed a ten-month note bearing interest at 5%.…
A: Note payable is a financial instrument against which a payment needs to be made after a certain…
Step by step
Solved in 2 steps
- A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383Carpenter Inc. estimates warranty expense at 3% of sales. Sales during the year were $8 million and warranty expenditures were $53,000. What was the balance in the Warranty Liability account at the end of the year? $202,000. $240,000 $187,000 $53,00027. GPS Company estimated annual warranty expense at 8% of net sales. The following data relate to the current year: Warranty liability, January 1: before adjustment - 100,000 debit. After adjustment - 540,000 credit. What is the amount of net sales for the current year? * a. 8,000,000 b. 6,750,000 c. 5,500,000 d. 1,250,000
- White Hat Digital, Inc. starts the year with a credit balance of $3,500 in its Estimated Warranty Payable account. During the year, there were $224,000 in sales and $4,800 in warranty repair payments. White Hat Digital estimates warranty expense at 2% of sales. At the end of the year, what is the balance in the Estimated Warranty Payable account?Use the information for the next two (2) questions. Bold Company estimated annual warranty expense at 2% of annual net sales. The net sales for the current year amounted to P4,000,000. At the end of the current year, the warranty liability was P60,000 and the warranty payments during the current year totaled P50,000. What is the warranty expense for the current year? What is the warranty liability at the beginning of the year?Patek Watch Company estimates that warranty costs will equal 2% of sales. In September, total sales equaled $400,000 and warranty claims were $4,700. If the September beginning balance in warranty payable was $7,200, what was the September ending balance in warranty payable? A. $3,300 OB. $3,900 OC. $8,000 OD. $10,500 OE. $10,800
- Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of 2,987 units. It is estimated that warranty repairs will average $17 per unit sold, and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Hall should show warranty expense of a.$35,545 b.$0 c.$50,779 d.$15,234The company had sales of $3,400,000. The estimated % that will be returned under the warranty is 1.5%. Record the journal entry for the estimated warranty expenseHall Company sells merchandise with a one-year warranty. In the current year, sales consist of 4,413 units. It is estimated that warranty repairs will average $15 per unit sold and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Hall should show warranty expense of a.$0 b.$66,195 c.$46,337 d.$19,859
- Product A comes with a two year warranty when purchased by customers. The estimated warranty costs as a percentage of dollar sales are 3% in the year of sale and 5% in the second year after the sale. The following information relates to sales and warranty expenditures of Product A Actual warranty expenditures $ 10,000 $ 35,000 Year Year 1 Year 2 Sales $400,000 $500,000 Which of the following is NOT part of the required journal entry in Year 1 based on the above information? Multiple Choice Credit cash $10,000 Debit warranty expense $12,000 None of the other alternatives are correct Debit warranty expense $32,000 Credit sales $400,000Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of 2,392 units. It is estimated that warranty repairs will average $17 per unit sold, and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Hall should show warranty expense of Oa. $40,664 Ob. so Oc. $28,465 Od. $12,199The following information relates to LoGo Corporation: Accounts payable $650,000 Credit purchases $21,000,000 Accounts receivable $2,100,000 What is LoGo's payables deferral period (DPO)? In your computations, assume there are 360 days in the year.