Solution-The balance of the estimated warranty liability

The balance of the estimated warranty liability account

Assignment Help Accounting Basics

Reference no: EM13911548

The balance of the Estimated Warranty Liability account was $12,500 on January 1, 2013, and $17,200 on December 31, 2013. Based on an analysis of warranty claims during the past several years, this year's warranty provision was established at 1.5% of sales, and sales during the year were $1,300,000.

Required:
a. What amount of warranty expense will appear on the income statement for the year ended December 31, 2013?
b. What were the actual costs of servicing products under warranty during the year?

Reference no: EM13911548

Questions Cloud

Bond that pays interest annually yields a rate of return : A bond that pays interest annually yields a rate of return of 8.00 percent. The inflation rate for the same period is 3 percent. What is the real rate of return on this bond?

The value of stock is function-capital asset pricing model : In chapter 9 of the Random Walk book, the author is unwilling to abandon the CAPM for all of the following reasons except: The value of a stock is a function of Select one: In chapter nine of the Random Walk book discusses the Capital Asset Pricing m..

What is this companys total debt ratio : A company has Sales- $5000, total assets- $3000, debt to eq ratio=.25, ROE=.15, retained earnings $240 for the year. At what rate can this company grow if it would like to maintain its debt-equity ratio and not issue any new equity for the for see ab..

According to market values-debt-preferred and equity : According to market values, 25% debt, 10% preferred and 65% equity. The YTM on the firm's debt is currently 7.5% and the firm's marginal tax rate is 35%. The overall market rate of return is 12% and the firm plans on using retained earnings exclusive..

The balance of the estimated warranty liability account : The balance of the Estimated Warranty Liability account was $12,500 on January 1, 2013, and $17,200 on December 31, 2013.

Calculate the projects NPV-IRR-MIRR and Payback : Old Dominion is considering adding a new type of wind tamer to its trailers, which will save the company in fuel costs each year and the required rate of return is 8%. Calculate the project's NPV, IRR, MIRR and Payback

Future value of multiple annuities : Assume that you contribute $290 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $580 per month for another 30 years. Given a 7 percent interest rate, what is the value of your retirement plan after the 5..

The bonds pay interest on an annual basis on june : On July 1, 2013, $6 million face amount of 7%, 10 year bonds were issued.

What is estimate of ironores price and earnings ratio : Ironore Limited is an iron mining company whose mines are slowly being depleted (i.e., little by little, the amount of iron ore available in the mine is declining as the ore is extracted each year). What is your estimate of Ironore’s Price/Earnings r..

User Account

All Pages

The balance of the estimated warranty liability account

Reference no: EM13911548

Reference no: EM13911548

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