Reference no: EM13901798
Hitzu Co. sold a copier costing $ 4,800 with a two year parts warranty to a customer on August 16, 2013, for $ 6,000 cash. Hitzu uses the perpetual inventory system. On November 22, 2014, the copier requires on site repairs that are completed the same day. The repairs cost $ 209 for materials taken from the Repair Parts Inventory.These are the only repairs required in 2014 for this copier. Based on experience, Hitzu expects to incur warranty costs equal to 4% of dollar sales. It records warranty expense with an adjusting entry at the end of each year.
1. How much warranty expense does the company report in 2013 for this copier?
2. How much is the estimated warranty liability for this copier as of December 31, 2013?
3. How much warranty expense does the company report in 2014 for this copier?
4. How much is the estimated warranty liability for this copier as of December 31, 2014?
5. Prepare journal entries to record
(a) The copier's sale;
(b) The adjustment on December 31, 2013, to recognize the warranty expense;
(c) The repairs that occur in November 2014.
|
What is the optimal service rate for this queue
: Consider an M/M/1 queue. Arrival rate is 10 customers per hour, service costs $3 per minute, and waiting costs are $0.5 per minute per customer. What is the optimal service rate for this queue?
|
|
Establishment of nonsmoking areas in public facilities
: Discuss the reasons behind the establishment of nonsmoking areas in public facilities and restaurants. In California, there are now bans on the sale and consumption of shark’s fin and goose liver (foie gras) placed on the basis of animal protection. ..
|
|
Three main creditors of the bankrupt firm
: A Colorado silver mine was owned by a company that went bankrupt. The three main creditors of the bankrupt firm formed the Raytheon Mine Company (RMI) as part of the plan of reorganization. Billerâs former partners in RMI brought a claim for contribu..
|
|
Find the mean forecast npv using crystal ball
: Conduct a discounted cash flow calculation to determine the NPV of the following project, assuming a required rate of return of 0.2. The project will cost $75,000 but will result in cash inflows of $20,000, $30,000, and $50,000 in each of the next fo..
|
|
How much warranty expense does the company report
: Hitzu Co. sold a copier costing $ 4,800 with a two year parts warranty to a customer on August 16, 2013, for $ 6,000 cash.
|
|
Optimal production of benches is and optimal production
: The Outdoor Furniture Corporation manufactures two products, benches and picnic tables, for use in yards and parks. The firm has two main resources: its carpenters (labor force) and a supply of redwood for use in the furniture. The optimal production..
|
|
Discuss fault tolerance approaches that systems managers use
: Discuss fault tolerance approaches that systems managers use to assure continuity of operations
|