How much should cougar corp add

Assignment Help Accounting Basics

Reference no: EM132785608

Problem 1: Cougar Corp had $250,000 in sales of Product X in 2020. By December 31st, it had already paid out $5,000 in warranty claims related to 2020 sales of Product X. Management estimates warranty expense will be 5% of total sales for 2020. To close out the period, how much should Cougar Corp add to its warranty liability account for Product X?

Multiple Choice

Option 1: $12,500.

Option 2: $7,500.

Option 3: $2,500.

Option 4: $500.

Reference no: EM132785608

Questions Cloud

What is the current yield on a 1-year t-bill : A two-year Treasury bill offers a 6.4% yield to maturity. The market's concensus forecast is that one-year T-bills will offer 5.9% next year.

What is the value of the option to wait : What is the value of the option to wait if the applicable discount rate is 12 percent?

What journal entry for cougar corp to record the contingent : Husky Corp is probable and the amount of the gain is reasonably estimable. The journal entry for Cougar Corp to record the contingent gain on December 31st

Calculate watervan economic value added : Calculate Watervan's economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

How much should cougar corp add : How much should Cougar Corp add to its warranty liability account for Product X? Cougar Corp had $250,000 in sales of Product X in 2020.

What will be the price per share : The following data is available for Garner Limited:Earnings per share = Rs.6.00Rate of return = 18 percent

Calculate the effective interest rate for yuni : Yuni is 27 years old and wishes to secure her future by saving $350 per week into an investment that pays 6.5% p.a. compounding weekly.

What costs should be capitalized : Ace Company purchased King Company at a cost, What costs should be capitalized and over how many years should they be amortized?

What were the dividends paid by the firm in 2019 : The firm's net income in 2019 was $990,000. There were no stock repurchases during the year. What were the dividends paid by the firm in 2019?

User Account

All Pages