Solution-Post to the estimated warranty payable t-account

Post to the estimated warranty payable t-account

Assignment Help Accounting Basics

Reference no: EM132525051

Question - Accounting for warranty expense and warranty payable Toyota, the car manufacturer, guarantees its vehicles for three years or 100,000 kilometres, whichever comes first. Suppose Toyota's experience indicates that it can expect warranty costs to equal to 3% of sales. Assume that Thomson Toyota in Adelaide makes sales of Toyota Corollas totalling $500,000 during 2018, its first year of operations. The business receives cash for 30% of the sales and loans receivable for the remainder. Payments to satisfy customer warranty claims totalled $10,000 during 2018. (These payments are reimbursed by Toyota.)

Required -

1. Record the journal entries for sales, warranty expense and warranty payments for Thomson Toyota.

2. Post to the estimated warranty payable T-account.

3. At the end of 2018, how much in warranty costs does Thomson Toyota still expect to pay?

Reference no: EM132525051

Questions Cloud

Entity integrity and referential integrity : What does it mean to say that a database displays both entity integrity and referential integrity? And why entity integrity and referential integrity important

Calculate days of sale in inventory using cost of goods sold : Calculate Days of Sales in Inventory (using cost of goods sold). Round the answers to two decimal places. Balance Sheet December 31, 2014

Manage information system : Create your own business. Create a web page interface sketch of what you would feature. Include a description of the business's features

Journalise the transactions for the business : March 1 Purchased equipment costing $80,000 by issuing an eight-year, 12% unsecured note payable. Journalise the transactions for the business

Post to the estimated warranty payable t-account : Assume that Thomson Toyota in Adelaide makes sales of Toyota Corollas totalling $500,000. Post to the estimated warranty payable T-account

Calculate average day cost of goods sold : Calculate Average Day's Cost of Goods Sold. Round the answers to two decimal places. Canadian Bacon Inc. financial statements

Describe how you would conduct a job analysis in a company : Explain how you would conduct a job analysis in a company that has never had job descriptions. Utilize the O*Net as a resource for your information.

Relate cloud computing to software quality assurance : Explain How a Cloud Computing Course will be helpful to a Software Quality Assurance Engineer in his day to day life job duties?

Effective information technology security policy framework : Establishing an effective Information Technology Security Policy Framework is critical in the development of a comprehensive security program

User Account

All Pages

Post to the estimated warranty payable t-account

Reference no: EM132525051

Reference no: EM132525051

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