Reference no: EM132563423

Question 1 - A company sells computers with a 6-month warranty. In January, the company sold 100,000 computers at $1,750 each; and 1,500 computers were turned in for repairs during that same month. The total repairs amounted to $185,000 costs from the computer parts inventory. It is estimated that 2% of all units sold will need repairs under warranty at an estimated cost of $200 per unit. Prepare the journal entries to record:

1) Estimated warranty expense for January.

2) Warranty repair costs for January.

Question 2 - Helix Co. entered into the following transactions involving short-term notes payable. On May 14, Helix purchased $40,000 merchandise from Advent Co., terms are 2/15, n/30. Helix uses the perpetual inventory system. On May 29, Helix replaced the May 14 account payable with a 60-day, $30,000 note bearing 8% annual along with paying $10,000 in cash. Paid the amount due on the note at maturity.

1) Determine the maturity date for the note.

2) Prepare journal entries for all the preceding transactions and events.