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Question - Ashbourne Ltd offers a 12-month warranty on kitchen appliances sold. On 1 July 2017 there was a credit balance of $90,000 in it Provisions for Warranties account. During the year ended 30 June 2018 Ashbourne Ltd incurred $88,000 in warranty costs of which $50,000 was from inventory and the remainder for labour costs. At the 30 June 2018 Ashbourne Ltd estimated its warranty expenditure for the following year would be $75,000 Note: Narrations are not required for the following entries:
Required -
(a) Prepare the General Journal entries to record the above.
(b) Post the above entries to the Provision for Warranties General Ledger.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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