Solution-What is the balance of the warranty payable account

What is the balance of the warranty payable account

Assignment Help Cost Accounting

Reference no: EM133179736

Question - Tech it Easy (TECH) sells computers and laptops. Tech includes a four-year warranty on each computer/Ipad they sell. Management estimates that the cost of providing the warranty coverage is 5% of sales in the first year and 1% of sales in each of years two and three and 1% in year four. Other facts follow:

TECH reported a $180,000 provision for warranty payable on its December 31, 2022 balance sheet.

TECHs sales for 2023 were $3,780,000.

The cost to TECH of meeting their warranty claims in 2023 was $320,000; $180,000 for parts and $240,000 for labor.

TECH's sales for 2024 were $2,890,000.

The cost to TECH of meeting their warranty claims in 2024 was $168,000; $80,800 for parts and $87,200 for labor.

TECH's sales for 2025 were $1,975,000.

The cost to TECH of meeting their warranty claims in 2025 was $154,000; $95,000 for parts and $59,000 for labor.

Required - What is the balance of the warranty payable account at December 31, 2025?

Reference no: EM133179736

Questions Cloud

Determining the shortlisting grid : You have just joined this organization as one of the new Recruitment and Selection Advisors. Your manager has just asked you to complete the process to hire a

What are the us tax consequences of teny : Assuming the U.S. corporate tax rate is 21%, what are the U.S. tax consequences of Teny's Year 1 and Year 2 activities

Draw background provided in the sociolinguistics : If you were an eighth grade teacher (who had taken this course), what would you do in the following situation and why?

Develop a reward system for mc donald : Develop a reward system for Mc Donald's non-managerial employees in Australia based on motivation theories:

What is the balance of the warranty payable account : TECH reported a $180,000 provision for warranty payable on its December 31, 2022 balance sheet. What is the balance of the warranty payable account

Initial assessment methods : In what ways are the following three initial assessment methods similar and in what ways are they different: Application blanks, biographical information, and r

What would you do to ensure happier and more loyal customers : What was the essential problem? If you ran the company, what would you do to ensure happier and more loyal customers?

Determine the human service profession : In your opinion do you believe that the human service profession is succeeding in addressing cultural needs. Why or why not? Be specific. Give examples

Khatric manufacturing company collective bargaining : Khatric Manufacturing Company has been manufacturing plastic household items for 60 years. As the leading manufacturing company in Jamaica, the C.E.O., Marc Ric

User Account

All Pages

What is the balance of the warranty payable account

Reference no: EM133179736

Reference no: EM133179736

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT