+1-415-670-9189
info@expertsmind.com
Recording journal entry-estimated warranty
Course:- Accounting Basics
Reference No.:- EM1356906




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

Bombeck Company sells a product for $1,500. When the customer buys it, Bombeck provides a one-year warranty. Bombeck sold 120 products during 2010. Based on analysis of past warranty records, Bombeck estimates that repairs will average 3% of total sales.

Required:

1. Prepare a journal entry to record the estimated liability.

2. Assume that during 2010, products under warranty must be repaired using repair parts from inventory costing $4,950. Prepare the journal entry to record the repairs of products.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
The United Nations has developed a set of millennium goals for countries, and the United Nations Statistics Division (UNSD) maintains databases to measure economic progress
Suppose the company changed its depreciation calculation procedures (still within GAAP) such that its depreciation expense doubled. How would this change affect Brandywine's
Use the method of Example 1 to calculate the slope of the line tangent to the curve of each of the given functions. Let Q1  have the indicated x-values. Sketch the curve and t
Determine the net income of a company for which of the following information is available for the month of July. Employee salaries expense $197,000 Interest expense 27,000 R
Determine which forms are necessary for Jackie O. Park's tax return. Go to the IRS Web site and download the fill-in tax forms that you will need to complete: 1040 and 1040 Sc
On September 3, 2008, Jackson Corporation purchases goods for a U.S. dollar equivalent of $17,000 from a Swiss company. The transaction is denominated in Swiss francs (SFr).
If a Perpetual bond yields 5% and makes an equal payment each year; which has the longer duration - a perpetual bond or a 15-year zero-coupon bond?
Calculate the real wage (W/P) the first month of the Bush Sr. Administration (1/89) and compare it to the last month of the Bush Sr. Administration (12/92). Please show all