 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
Calculating estimated warranty liability?
GMC warranties the products that they sell. They estimate that warranty work needed in the year following the sale is 4% of sales while warranty work needed in the second year after the sale is estimated at 1% of sales.
Required: A)Given that sales in 2010 are $2,547,000 and sales in 2011 are $2,893,000, calculate the warranty expense for 2010 and 2011 and record the entries. |
||||
Check out some similar questions!
How do I Use a horizontal model (or a T-account of the Estimated Warranty Liability) to show the effect of having a warranty program?
Clean Corporation manufactures and sells dishwashers. Clean provides all customers with a two-year warranty guaranteeing to repair, free of charge, any defects reported during this time. During the year, it sold 100,000 dishwashers for $325 each. Analysis of past warranty records indicates that 12%...
I need help with the following question. Any pointers is greatly appreciated. Warranty expense. Woodmier Lawn Products introduced a new line of Commercial sprinklers in 2002 that carry a one-year warranty against Manufacturer’s defects. Because this was the first product for which the...
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 the same month. The total repairs amounted to $185,000 costs from the computer parts inventory. It is estimated that 2% of all...
View more questions Search
| Question Tools | Search this Question |
Add your answer here.
|
