User Account

All Pages

How much is the warranty liability for ledybag company

Assignment Help Accounting Basics
Reference no: EM132839967

In 2020, Ledybag Company started selling new computer that carried a 2-year warranty against defects Based on the company's past experience, the entity estimated warranty cost as a percentage of sales.

First year of warranty. 4%

Second year of warranty. 10%

Sales and actual warranty repairs are as follows:

                                                        2020                    2021

Sales                                   ?4,000,000.     ?6,200,000

Actual warranty repairs.          200,000.             350,000

Problem 1: How much is the warranty liability for 2021?

Reference no: EM132839967

Questions Cloud

How you could implement the device in your classroom : There are a variety of assistive technologies (AT) available for early childhood teachers to incorporate into instruction for students with learning.
Describe six corporate governance weaknesses faced by serena : Describe SIX corporate governance weaknesses faced by Serena VDW Co and provide recommendations to address each weakness
Calculate amount of Goodwill arising from this combination : ABC123 Inc has decided to purchase 100% the voting shares of DEF456 for $400,000 in cash on July 1, 2019. Calculate the amount of Goodwill
Significant impact on businesses and industries : We have viewed how Blockchain has made a significant impact on businesses and industries.
How much is the warranty liability for ledybag company : How much is the warranty liability for 2021? Ledybag Company started selling new computer that carried a 2-year warranty against defects.
Define what you have learned about parental involvement : You have read Chapters 11-13 in your text and reflected on diverse backgrounds, discipline, and parental involvement. For this task, reflect on what you have.
What is a conceptual framework in accounting : How does the conceptual framework assist in addressing accounting practice, and assist in filling gaps where rules do not exist?
Case-caledon concrete mixers : This a rich case that provides an opportunity to delve into a number of issues, including supplier evaluation systems and trade-offs between service and quality
What is the balance of the accumulated surplus or deficit : What is the balance of the 'Accumulated Surplus or Deficit, End' to be presented in the Statement of Financial Position as of December 31, 20x1?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the weighted average cost of capital

Calculate the weighted average cost of capital (WACC) if the ratio is as follows: Debt 30 percent. Preferred share 20 percent. Equity 50 percent

  Differentiate sales value at splitoff and nrv method

Joint-cost allocation, process further or sell. (CMA, adapted) Liverpool Sawmill, Inc. (LSI) purchases logs from independent timber contractors and processes.

  Eveluate cost of ending inventory and cost of goods sold

Eveluate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.

  What ethical issue is at stake

What ethical issue is at stake? Should the controller's argument be accepted if she does not really know much about copier technology?

  What was the amount of yaakov taxable estate

When Yaakov died in March 2013, his gross estate was valued at $8.5 million. What was the amount of Yaakov's taxable estate

  What interest expense on zero coupon bonds is

When bonds are retired prior to maturity, a company recognizes a gain if the call price of the bonds is? What Interest expense on zero coupon bonds is

  Entries for issuing bonds and amortizing discount by

entries for issuing bonds and amortizing discount by straight-line method on the first day of its fiscal year robbins

  Service the following fixed assets for her business

Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2014, Janice opened her own office located at 2751 Waldham Road, Pleasant Hill, NM 88135. She called her business Writers Anonymous.

  Find what amount should be reported as segment profit

What amount should be reported as segment profit? The total profit and loss included intersegment profit of P61,000. In addition, the entity ha P5,000

  Body of thought applies to and informs ethical practices

You are to prepare a 5-page report on a philosopher/thinker of your choice and show clearly how his/her body of thought applies to, and informs ethical practices and conduct in accounting and business in general. The paper is to be well-referenced an..

  What stock would you recommend to the client

What factors would you consider as a financial advisor in making decisions about the data above?what stock would you recommend to the client?

  Acorporation issues 1500 shares of common stock for

a corporation issues 1500 shares of common stock for 32000. the stock has a stated value of 10 per share. the journal

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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