User Account

All Pages

Prepare the journal entries to record the estimated

Assignment Help Accounting Basics
Reference no: EM131129016

Hiatt Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Hiatt estimates that 3% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or repairing a defective unit is $20.The units sold and units defective that occurred during the last 2 months of 2010 are as follows.

Instructions

(a) Determine the estimated warranty liability at December 31 for the units sold in November and December.

(b) Prepare the journal entries to record the estimated liability for warranties and the costs incurred in honoring 1,000 warranty claims. (Assume actual costs of $20,000.)

(c) Give the entry to record the honoring of 500 warranty contracts in January at an average cost of$20.  

Reference no: EM131129016

Questions Cloud

Primary benefits of visual management within workplace : What is the primary benefits of implementing a Lean Workflow Cycle within a team? What are the primary benefits of Visual Management within the workplace?
Prepare the current liabilities section of the balance sheet : Prepare the current liabilities section of the balance sheet, assuming $30,000 of the mortgage is payable next year.
Forecasts are more accurate using the concept of mad : The monthly sales for Telco Batteries Inc., were as follows: Month Sales 1 9 2 7 3 10 4 8 5 7 6 12 7 10 8 11 9 12 10 10 11 14 12 16 a) Compute a five and a seven month moving average for the last 5 months of historical data (months 8 thru 12). b) Det..
How should the company account for this lawsuit : Assume instead that at December 31, 2010, Brad Hoey's attorneys feel it is probable that Brad Hoey will lose the lawsuit, and be required to pay $1,000,000. How should the company account for this lawsuit?
Prepare the journal entries to record the estimated : Prepare the journal entries to record the estimated liability for warranties and the costs incurred in honoring 1,000 warranty claims. (Assume actual costs of $20,000.)
External factors during the risk management process : How would you recommend that companies or even project managers deal with external factors during the risk management process? Consider at what point they should be discussed and how often and by whom.
Why is important to maintain certain level of professional : Why is important to maintain a certain level of professionalism when doing consulting work? Do you believe that only one error in professionalism or ethics can damage your reputation as a consultant? Why or why not?
Prepare the entry in november for the receipt : Prepare the adjusting entry at March 31, 2011, to record subscription revenue earned in the first quarter of 2011.
Should be applicable to businesses in product liability case : Discuss the concept of strict liability. Should this be applicable to businesses in product liability cases? Is this fair? What if a business is extremely cautious and yet a person is injured by the product. Why would it make sense to hold the busine..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Confidence interval for the mean difference

Using the summary statistics in Exercise 4, and assuming that the data come from a distribution that is Normally distributed, a) Find a 95% confidence interval for the mean difference in page views from the two websites.

  What is the effective rate of interest implicit in agreement

Suppose the market value of the machine was unknown at the time of purchase, but the market rate of interest for notes of similar risk was 11%. Prepare the journal entry to record the purchase of the machine.

  Prepare an amortization schedule for the interest

Prepare an amortization schedule for the interest and principal payments for the five year period.

  Create an argument in agreement or disagreement

Create an argument in agreement or disagreement that the creation of the PCAOB has been effective with improving the reliability of audited financial statement for the public users of the information. Provide support for your position.

  George plans to sell his customers a special for a ski

george plans to sell his customers a special for a ski package weekend. he is able to purchase the package from the

  Prepare the required journal entries for restin corporation

Restin Co. uses the gross method to record sales made on credit. On June 1, 2010, it made sales of $50,000 with terms 3/15, n/45. On June 12, 2010, Restin received full payment for the June 1 sale.

  Question-ann taylor retail

Ann Taylor Retail, Inc., sells professional women'sapparel through company-owned retail stores. Recent financialinformation for Ann Taylor is provided below (all number inthousands):

  In 2009 quasar ltd acquired all of the common stock of

in 2009 quasar ltd. acquired all of the common stock of penlight laser for 124 million. the fair value of penlights

  Elimination for the machine account

What amount will be debited in the December 31, 2005 worksheet elimination for the machine account as a result fo this transaction?

  Which of yuki actions indicated relationship behavior

Did Yuki's leadership style match what was needed in the situation? Why or why not? Which of Yuki's actions indicated relationship behavior?

  What is your estimate of price per share

What is your estimate of price per share using the dividend discount model at 12/31/05? What is your estimate of price using the residual income valuation model at 12/31/05?

  Do you think that acores policy of allocating the same

suppose acore pharmaceuticals has four sales representatives assigned to the state of arizona. these sales reps are

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd