User Account

All Pages

Prepare entries for selzer using expense warranty approach

Assignment Help Accounting Basics
Reference no: EM131774188

Problem -

Selzer Equipment Company sold 533 Rollomatics during 2010 at $6,840 each. During 2010, Selzer spent $38,400 servicing the 2-year warranties that accompany the Rollomatic. All applicable transactions are on a cash basis.

(a) Prepare 2010 entries for Selzer using the expense warranty approach. Assume that Selzer estimates the total cost of servicing the warranties will be $153,600 for 2 years.

(b) Prepare 2010 entries for Selzer assuming that the warranties are not an integral part of the sale. Assume that of the sales total, $160,400 relates to sales of warranty contracts. Selzer estimates the total cost of servicing the warranties will be $153,600 for 2 years. Estimate revenues earned on the basis of costs incurred and estimated costs.

Reference no: EM131774188

Questions Cloud

Draw the contract curve for efficient production : Draw the contract curve for efficient production and explain the relationship of the contract curve to the production possibilities frontier.
Discuss cost of operations cash flow analysis : Pertinent financial information for the reviewer includes all of the following except: Cost of operations Cash flow analysis
How is the break-even point determined : What is taken into consideration to figure out the contribution margin?
Explain conditions for the economy to be pareto efficient : Suppose that there are two industries and two consumers. Each industry uses both capital K and labor L in the production process, and each produces a different.
Prepare entries for selzer using expense warranty approach : Selzer Equipment Company sold 533 Rollomatics during 2010 at $6,840 each. Prepare 2010 entries for Selzer using the expense warranty approach
How does the development of the service sector : How does the development of the service sector raise new challenges for management accounting whose principles and practices largely refer to the paradigm?
Vocal is multinational in the valley specialized : Vocal is a multinational in the Valley specialized in internet technology.
Determined at the date of the purchase that the fair value : determined at the date of the purchase that the fair value of the identifiable net assets of Hall
Why is management accounting information important : Why is management accounting information important? What would happen if this kind of information is not available in a company?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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