How much is the estimated warranty liability

Assignment Help Accounting Basics
Reference no: EM132826255

In 2020 Plumpton company started selling new computer that carried a 2-year warranty against defects. Bases on the manufacturer's recommendations, the entity estimated warranty cost as a percentage of sales

First year of warranty 3%
Second year of warranty. 5%

Sales and actual warranty repairs are as follows:

                                              2020                    2021
Sales                          5,000,000          7,000,000
Actual Warranty repairs   100,000                 250,000

Problem 1: How much is the warranty expense for 2020?

Problem 2: How much is the estimated warranty liability for 2021?

Reference no: EM132826255

Questions Cloud

How would you handle the situation : Imagine that the cell phone you have confiscated has readily visible sexually inappropriate messages on it. How would you handle the situation?
How much is the liability as of december : How much is the liability as of December 31, 2021? A plate is offered to customers sending in two coupons accompanied by a remittance of P2.
Define distinct diverse groups within us student population : Describe two distinct diverse groups within the U.S. student population. To help an educator gain knowledge of each diversity group, cite source information to.
How should the liability be accounted for in the financial : How should the liability be accounted for in the financial statements? Sarzuela Corp is a guarantor of a P1,500,000 notes payable of Ramos, Inc to BPI.
How much is the estimated warranty liability : How much is the estimated warranty liability for 2021? In 2020 Plumpton company started selling new computer that carried a 2-year
What is the annual payment necessary : The projected cost of the stadium in 2014 dollars is $7.5 million. What is the annual payment necessary to meet this projected cost of the stadium
Find an example of a green hotel : Find an example of a "green hotel" or "sustainable hospitality operation." Provide a link to the example and explain how they are using the three dimensions
What area of the big five are they struggling with : Describe a small group of students (3-5) that have literacy deficits. What area of the Big 5 are they struggling with? Develop instructional strategies plan to.
Discuss the proposed price of the inventory by John Pte Ltd : Discuss the proposed price of the inventory by John Pte Ltd and advice the buyer as to whether it would be acceptable under FRS 113 Fair Value Measurement

Reviews

Write a Review

Accounting Basics Questions & Answers

  How purpose and principle of internal controls are different

Cash presents special internal control challenges. How do internal controls for cash differ for accounting systems reporting under IFRS versus U.S. GAAP?

  Calculate break even analysis

How do you calculate Break even analysis from this information: 600 units to be produced and sold, a per unit selling price of $85

  The curerent year mikes agi is 50000 mike has no

the curerent year mikes agi is 50000. mike has no miscellaneous itemzed deductions other than employment related

  Company grant credit to national under terms

The amount of the purchases would probably be about $10,000 per month, and the terms would require National to make payment in full within 30 days. Would you recommend that your company grant credit to National under these terms? Explain the reaso..

  Recognize gain or loss on derecognition in profit or loss

Recognize the gain or loss on derecognition in profit or loss. On January 1, 2018 Karen Company purchased 5-year bond with a face value of Php 4,000,000

  On february 1 2010 the balance of the retained earnings

on february 1 2010 the balance of the retained earnings account of blue power corporation was 630000. revenues for

  What were the sales in units for last year

What were the sales in units for last year? During the most recent year a company had operating income of $90,000 using absorption costing

  Accounting practices and entries

Write a 700- to 1,050-word paper in APA format comparing and contrasting the different types of accounting, namely accrual, cash flow, and fund accounting. Be sure to consider the following:

  Find what is the ending inventory value at cost

Sales during the current year totaled $3060000, and net markups (markdowns) were $75000 ($111000). What is the ending inventory value at cost?

  Type a reorganization

Shipyard Corp. acquired Boatworks Corp. in a Type A reorganization on October 19, 2011. On the date of acquisition, Boatworks had a deficit in its earnings and profits of $30,000.

  What directing managerial function is all about

What directing managerial function is all about and briefly describe the four elements that comprise the directing function. Provide the example

  In using the internal rate of return method the internal

in using the internal rate of return method the internal rate of return factor was 4.0 and the equal annual cash

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd