Reference no: EM132518060
With the goal of attracting as much customers as possible in the CAR region, EYCH Appliance Co. engaged in a customer satisfaction program and marketing strategy for two of their major lines of products:
(1) electrical appliances and
(2) household and office furniture. All branches in the region are participating in the company's promotions.
In the customer satisfaction program, EYCH provides one-year warranty replacement of parts and labor of the electrical appliances sold. Based on past experience, the estimated warranty cost is 3% of sales.
- During 2019, total sales of electrical appliances was ?7,200,000.
- Replacement parts and labor for warranty work totaled ?184,000 during 2019.
- In the company's marketing strategy for the household and office furniture section, customers are given a coupon for every ?1,000 spent on these items.
- Customers may exchange 10 coupons plus ?500 for a "hot and cold" water dispenser. Each water dispenser cost ?1,200 and estimates that 40% of the coupons given to customers will be redeemed.
- During 2019, sales of household and office furniture totaled ?2,600,000.
A total of 100 water dispensers used in the promo were purchased and there were 800 coupons redeemed in 2019.The accrual method is used by EYCH to account for the warranty and premium costs for financial reporting purposes.
The balances in the accounts related to warranties and premiums on January 1, 2019 were shown as follows:
Inventory of "hot and cold" water dispensers - 30 units;
Estimated premiums claims outstanding -?17,500;
Estimated liability for warranty -?80,000.
Question 1: How much is the estimated liability for warranty at December 31, 2019?
|
How much is the gain or loss from disposal
: How much is the gain(loss) from disposal? Aye Inc. decided to revalue its machine on December 31, 2019, and determined that the current replacement
|
|
Information security and safe computing
: Explain what the following terms mean to you as they apply to information security and safe computing: Confidentiality, Integrity, and Availability.
|
|
What is percentage return loses if the price of stock rises
: After an analysis of Lion/Bear, Inc., If O'Grady does sell the stock short, what is the percentage return he loses if the price of the stock rises to $12?
|
|
Global economy is very top-down driven with government
: Today's Global Economy is very top-down driven with the government making all the decisions and regulations as it relates to doing business globally.
|
|
How much is the estimated liability for warranty at december
: How much is the estimated liability for warranty at December 31, 2019? With the goal of attracting as much customers as possible in the CAR region
|
|
What the id forces might have been pushing king to do
: Just pointing to there being ego which is balancing id and superego, without really explaining what the id forces might have been pushing King to do versus.
|
|
Smart technologies as primary device
: Do you foresee that the traditional computer will be replaced by mobile and smart technologies as a primary device form factor in the near future?
|
|
Illustrate what happens in the short run
: Beginning with long-run equilibrium, use the aggregate demand and aggregate supply model to illustrate what happens in the short run
|
|
Calculate the us net national gains or losses
: Calculate the U.S. net national gains or losses from the tariff, and the U.S. gains or losses from the VER, relative to free trade. Which of the three choices
|