Prepare the journal entries to create and close the warranty

Assignment Help Financial Accounting

Reference no: EM13916865

Eric's Electronics sells computer parts. The company is required to warranty its products for 90 days. Historical Data indicates that 4% of monthly sales result in warranty claims. The monthly sales for February were $567,550.

The following warranty claims were made against the February sales.

3/10 $75

3/13 $145

3/15 $222

3/18 $108

3/21 $119

3/24 $281

3/27 $101

3/29 $41

3/31 $588

4/01 $66

4/04 $218

4/08 $951

4/15 $1040

4/17 $71

4/19 $822

4/23 $403

4/27 $52

4/28 $373

4/29 $169

5/02 $600

5/05 $2775

5/09 $313

5/12 $781

5/14 $385

5/16 $488

5/20 $1089

5/24 $966

5/26 $509

5/28 $776

5/29 $182

5/30 $426

5/31 $600

6/01 $1006

6/04 $2611

6/10 $490

6/15 $745

6/20 $38

6/21 $1245

6/25 $949

6/27 $800

6/28 $459

6/29 $530

6/30 $295

7/01 $1267

Prepare the journal entries to create and close the warranty period for the contingent liability due to sales from February.

Post claims to the appropriate T-accounts to illustrate the journal entries.

Reference no: EM13916865

Questions Cloud

Determine the amount of operating cash flows : Determine the amount of operating cash flows the company will report as received from customers in the current year

Should organizations take steps retain employees discipline : Should organizations take steps to retain employees with performance or discipline problems, or just fire them? Explain why. In the explanation, discuss how the value of personal development applies to this question.

Complete the analysis : Eric's Electronics is moving into new facilities and must determine whether it should retain or replace various fixed assets. Complete the analysis of each of the following transactions.

Company specializing in sales and maintenance of the exotic : Exotic Cars Inc. (ECI) is a company specializing in sales and maintenance of the exotic (hence the name) cars. The cars that ECI sells come from multiple sources:

Prepare the journal entries to create and close the warranty : Prepare the journal entries to create and close the warranty period for the contingent liability due to sales from February.

Identify the different types of forecasts : Identify the different types of forecasts that can be developed for use by a company. Cite examples of how a company might use a particular forecast method and explain why that type of forecast was best suited for that situation.

Recovery property : a calendar year taxpayer placed in service $100,000 of five-year recovery property. If this was in addition to another $250,000 of assets placed into service early in the year, it will be subject to: the mid-quarter convention. the mid-month conventi..

What does the abbreviation utc indicate : What does the abbreviation UTC indicate? (Use Google and search for UTC definition.) Internationally, time is shown with a 24-hour clock (sometimes called "military time").

Methane gas and nitrogen dioxide gas : There are two cylinders containing methane gas and Nitrogen dioxide gas. The volume of these two cylinders re 500cm3 and 700 cm 3 respectively.

User Account

All Pages