Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - A manufacturer gives warranties at the time of sale to purchasers of its product. Under the terms of the contract for sale, the manufacturer undertakes to make good, by repair or replacement, manufacturing defects that become apparent within three years from the date of sale. On the basis of experience, it is probable that there will be some claims under the warranties.
In 2020, goods are sold for P1,000,000. Experience indicates that 90 percent of products sold require no warranty repairs, 4 percent of products sold require minor repairs costing 30 percent of the sale price, and 6 percent of products sold require major repairs or replacement costing 70 percent of sale price. The expenditures for warranty repairs and replacements for products sold in 2020 are expected to be made 60 percent in 2021, 10 percent in 2022 and 30 percent in 2023 in each case at the end of the period.
The entity uses a 'risk free' discount rate based on government bonds to determine the present value of cash flows Discount factors relevant to the transaction are as follows:
Year
Rate (%)
Discount Factor
1
6%
0.9434
2
7%
0.8734
3
0.8163
Required - Compute the warranty obligation at the end of 2020.
What the journal entry would be for this question. Truck with a listing price of $48,800. It was acquired for a down payment of $6,100 cash
Bank memorandum, Debit incoming money from Customer PT. RRY $1,300, interest income $40, Prepare bank reconciliation for 31 Dec 2021
In an effort to keep Seiko as an employee, Idaho Office Supply, Inc. offers her a $7,500 raise. What is the annual after-tax cost to Idaho Office Supply
Suppose instead that SSC has just made a $50 million distribution in form of a stock repurchase. What is its intrinsic stock price per share after repurchase
On 31 December 2018 the company made a 1 for 10 bonus issue. On 31 March 2019, Sipho sold 300 shares for R800. What is the new base cost of Sipho's holding
Indicate whether the following would increase, decrease, or have no effect on (a) assets, (b) retained earnings, and (c) total stockholders' equity. A company declares and pays a cash dividend of $25,000.
The bank pays a nominal interest rate of 13% but uses quarterly compounding. How much your account with the bank be
Prepare a stock card to determine cost of sales. Please acquire a thorough understanding about the recording process before you enter transactions.
The ad captured Wilde's attention, in part because he recently had been concerned that the interest charges incurred by his business were getting out of line. The price, though, was somewhat higher than prices for this model he had seen elsewhere.
Compare and contrast compensation plans, such as restricted stock and stock appreciation rights, indicating the key differences with the accounting treatment. Determine the option that would have the least impact on a company's earnings. Recommend..
on an involuntary conversion in which the taxpayer does not buy replacement property within the replacement period the gain on the involuntary conversion and any tax due must be reported.
How much was recorded to Purchase Discounts Lost on January 31, 2020? How much is recorded by Llamas Co. to Sales on January 1, 2020?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd