Solution-Indicated that actual claims were less than

Indicated that actual claims were less than expected

Assignment Help Accounting Basics

Reference no: EM13879270

1.In 2012, Quapau Products introduced a new line of hot water heaters that carry a one year warranty against manufacturer's defects. Based on industry experience, warranty costs were expected to approximate 5% of sales revenue. First year sales of the heaters were $300,000. An evaluation of the company's claims experience in late 2013 indicated that actual claims were less than expected 4% of sales rather than 5%. Assuming sales of the heaters in 2013 were $350,000 and warranty expenditures in 2013 totaled $12,000, what is the 2013 warranty expense?

Reference no: EM13879270

Questions Cloud

Reference validation mechanism and toe security functions : What are the conceptual differences between a reference validation mechanism, a trusted computing base, and the TOE Security Functions and How will you explain to the management of this company why their software is not a high assurance software.

Briefly describe the steps j j should take to report : Briefly describe the steps J J should take to report the change

What is the tax treatment of the scholarship : What is the tax treatment of the scholarship? Is Andrew required to include it as income on his tax return? Is Andrew eligible for the education credits?

Determine the total pressure drop : The mercury manometer reads a 6-in height. The pressure drop p2 - p1 is partly due to friction and partly due to gravity. Determine the total pressure drop and also the part due to friction only. Which part does the manometer read? Why?

Indicated that actual claims were less than expected : 1.In 2012, Quapau Products introduced a new line of hot water heaters that carry a one year warranty against manufacturer's defects. Based on industry experience,

Prepare a cash budget with columns for each month : Prepare a cash budget with columns for each month, January through March 2003, and a fourth column for the quarterly totals

Determining the average velocity in the pipe : Water at 20°C is pumped at 1500 gal/min from the lower to the upper reservoir, as in Fig. P3.141. Pipe friction losses are approximated by hf ˜ 27V2 /(2g), where V is the average velocity in the pipe.

The machine''s useful life was expected to be five years : traight line depreciation is used by PKE. Ignoring income taxes, what journal entry will PKE use to correct the error?

Design a vortex flow meter : Vortex shedding can be used to design a vortex flow meter (Fig.). A blunt rod stretched across the pipe sheds vortices whose frequency is read by the sensor downstream. Suppose the pipe diameter is 5 cm and the rod is a cylinder of diameter 8 mm.

User Account

All Pages

Indicated that actual claims were less than expected

Reference no: EM13879270

Reference no: EM13879270

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT