Reference no: EM131115794
1. Warranties and Premiums Garison Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music. Garison uses two sales promotion techniques-warranties and premiums-to attract customers. Musical instruments and sound equipment are sold with a one-year warranty for replacement of parts and labor. The estimated warranty cost, based on past experience, is 2% of sales. The premium is offered on the recorded and sheet music. Customers receive a coupon for each dollar spent on recorded music or sheet music. Customers may exchange 200 coupons and $20 for a CD player. Garison pays $32 for each CD player and estimates that 60% of the coupons given to customers will be redeemed. Garrison's total sales for 2010 were $7,200,000-$5,700,000 from musical instruments and sound reproduction equipment and $1,500,000 from recorded music and sheet music. Replacement parts and labor for warranty work totaled $164,000 during 2010. A total of 6,500 CD players used in the premium program were purchased during the year and there were 1,200,000 coupons redeemed in 2010. The accrual method is used by Garison to account for the warranty and premium costs for financial reporting purposes. The balances in the accounts related to warranties and premiums on January 1, 2010, were as shown below.
Inventory of Premium CD Players $37,600
Estimated Premium Claims Outstanding 44,800
Estimated Liability from Warranties 136,000
Garison Music Emporium is preparing its financial statements for the year ended December 31, 2010. Determine the amounts that will be shown on the 2010 financial statements for the following.
(1) Warranty Expense.
(2) Estimated Liability from Warranties.
(3) Premium Expense.
(4) Inventory of Premium CD Players.
(5) Estimated Premium Claims Outstanding.(CMA adapted)
|
Forecast average cash bonus for financial investment
: Using a three-period simple moving average, forecast the average cash bonus for a financial investment employee in New York City in 2013.
|
|
What is the economic order quantity
: A university credit union that serves a very large student population has an ATM in the student union where several cafes, restaurants, game rooms, gift shops and other unique shops are located. The average cash withdrawal at the ATM is about $40. Ho..
|
|
Identify two or more community organizations or agencies
: Discuss the social and cultural norms of your vulnerable population and how these play a role in the need for the services offered by your program. Describe how the vulnerable population experiences the health care system. Analyze methods your pr..
|
|
Swiss cheese theory
: Examine James Reasons' Swiss Cheese Theory and its application to quality and risk management, including patient safety, in a health care setting. What organizational influences would predispose an organization to the Swiss Cheese Theory? What strate..
|
|
Warranties and premiums garison music emporium carries
: Warranties and Premiums Garison Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music
|
|
Yields of five subprocesses
: Question: The throughput yields of five subprocesses in series to execute in order are: 90%, 92%, 91%, 91.3%, and 89%, respectively. What is the probability that the order executed through this five subprocesses in series is defect free?
|
|
Discuss the concept of double doctrine effect
: Discuss the concept of double doctrine effect, suicidality. What part do professional helpers play? Does Robin Williams death relate to these topics, was there a double effect? How does this doctrine relate to personal and professional lives?
|
|
Does your group demonstrate weak or strong uncertainty
: What is the most important ritual shared by group members that keeps them focused on both their vision and their mission, and not suffer vision or mission creep which may occur in order to avoid conflict, and how did you make that determination?
|
|
How does this affect the common consumer
: When you go to a department store and purchase an item, what have you done according to contract law? How does this affect the common consumer?
|