Fitzpatrick Co. sold $391,000 of equipment during January under a one-year warranty. The cost to repair defects under the warranty is estimated at 3% of the sales price. On August 15, a customer required a $110 part replacement plus $55 of labor under the warranty. Required:   Provide the journal entry for (a) the estimated warranty expense on January 31 for January sales on page 10 of the journal and (b) the August 15 warranty work on page 14 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered

Q: Presley Company sells a product that includes a one-year warranty on parts and labor. During the…

A: Prepare the journal entries to record the estimated warranty costs.

Q: During 2005, Cory Company introduced a new line of machines that carry a two-year warranty against…

A: The warranty Expenses is recognized and recorded at the time when the sales are made.

Q: Haeir Co. sells washing machines that carry a three-year warranty against manufacturer's defects.…

A: calculation warranty expenses and warranty liabilities are as follows

Q: A company sold 10,000 TVs in July and estimates warranty expense for these TVs to be $25,000. During…

A: Warranty expenses: Warranty expense is the cost that a business expects to or has already incurred…

Q: Ecco Company sold $136,000 of kitchen appliances with six-month warranties during September. The…

A: Estimated warranty expenses are based on the rate of warranty expense on the sales price. So…

Q: Milan Company, a manufacturer of heavy machinery, grants a four-year warranty on its products. The…

A: Warranty indicates the obligation of the company related to the product sold where they have to bear…

Q: n December 1, Sheridan Company introduces a new product that includes a one-year warranty on parts.…

A: Solution:  estimated warranty cost = Units sold * 5% *90 = 1400*5%*90  = $6,300

Q: East Corp. manufactures stereo systems that carry a two-year warranty against defects. Based on past…

A: Income statement is a financial statement which shows all income and expenses of the business and at…

Q: Old Hampton Company is preparing adjusting entries at December 31. An analysis reveals the…

A: Journal Entry - It is record of every business transactions in day to day life over a particular…

Q: Hidden Hills Company manufactures and sells electronic games. Each game costs $50 to produce, sells…

A: Product Warranty expense = Sales x % of estimated warranty = (6500 games x $90) x 7% = $40,950

Q: Ecco Company sold $155,000 of kitchen appliances with six-month warranties durin September. The cost…

A: Warranty expense is the expected cost to be incurred for the repair or replacement of goods that…

Q: Blue Jay, Inc., manufactures and sells computer monitors with a three-year warranty.Warranty costs…

A: Given information is: Blue Jay, Inc., manufactures and sells computer monitors with a three-year…

Q: Yummy sold $656,000 of consumer electronics during July under a one-year warranty. The cost to…

A: Contingent liability may or may not arise on the occurrence of future events. Warranty liability is…

Q: Ecco Company sold $145,000 of kitchen appliances with six-month warranties during September. The…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: Pink Pty Ltd. sold $110,000 of cosmetic products during July under a three-month warranty. The cost…

A: Estimated warranty expenses = $110,000 x 2 5% = $2,750 $140 is not estimated warranty expense, it is…

Q: A company sells its product subject to a warranty that covers the cost of parts for repairs during…

A: Warranty Liability: Estimated liability is an exact dollar amount of debt or obligation which is…

Q: Parker Manufacturing Co. warrants its products for one year. The estimated product warranty is 3% of…

A:

Q: Ecco Company sold $158,000 of kitchen appliances with six-month warranties during September. The…

A: The estimated warranty expense is $7,900 ($158,000*5%) and out of which $226 ($140 + $86) worth of…

Q: Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 4%…

A: Solution:- a)Preparation of  the adjusting entry required at January 31, the end of the first month…

Q: Carnes Electronics sells consumer electronics that carry a 90-day manufacturer’s warranty. At the…

A: 1.Identify  whether the given situation represent loss contingency.This situation is not loss…

Q: During Year 2, Going-Going-Gone sold 100 hot air balloons for $4,000 each. The balloons carry a…

A: Estimated repair cost = Total ales x 4% = (100 x $4,000) x 4% = $16,000

Q: EarlKeen Co. sold $260,000 of equipment during January under a one-year warranty. The cost to repair…

A: Prepare the journal entry to record estimated warranty expense.

Q: Ecco Company sold $150,000 of kitchen appliances with six-month warranties during September.  The…

A: Warranty Expense = Sales x estimated warranty expense percentage = $150,000*6% = $9,000

Q: Ecco Company sold $150,000 kitchen appliances with six-month warranties during September. The cost…

A: Journal Entry for Estimated Warranty Expense :  Sep-30 Warranty Expenses A/c Dr $9000       To…

Q: What is the balance of the Estimated Warranty Liability account as of January 31?

A: The balance of the estimated warranty liability account will be calculated by drawing a ledger…

Q: [The following information applies to the questions displayed below.] Hitzu Company sold a copier…

A: Journal entries refer to the process of inspecting and formulating all the transactions of a company…

Q: Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of…

A: Introduction: An income statement is a critical financial record for every company. It illustrates…

Q: October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-day…

A: Warranty expense refers to the expense which is linked with the repair of defective product, refund…

Q: [The following information applies to the questions displayed below.] Hitzu Company sold a copier…

A: Warranty expenses are debited and are estimated as a percentage of dollar sales. The estimated…

Q: Fantastic Co. sold $150,000 of kitchen appliances during August under a six month warranty. The cost…

A: In an accounting cycle, journal entry can be defined as the process of systematically recording all…

Q: On October 29, Lobo Company began operations by purchasing razors for resale. The razors have a…

A: Journal entry is the first step to record transaction in the books of account. Warranty cost = 5% of…

Q: [The following information applies to the questions displayed below.] Hitzu Company sold a copier…

A: The question is based on the concept of Financial Accounting. As per the Bartleby guidelines we are…

Q: Cook-Rite sold $152,000 of consumer electronics during July under a one-year warranty. The cost to…

A: The warranty Expenses are estimated on the basis of past year experiences.

Q: on December 1, Concord Company introduces a new product that includes a one-year warranty on parts.…

A: Solution: Estimated warranty cost = 1300 units * 6% * $90 = 1300*6%*90 = $7020

Q: Prepare any necessary adjusting journal entries, giving effect to the proper accounting treatment of…

A: Warranty Accounting: Sometimes businesses provide warranty policies to their customers under which…

Q: Oven Roasted sold $394,000 of consumer electronics during July under a two-year warranty. The cost…

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Q: Dagupan Company prepares quarterly interim

A: Total warranty = warranty claim% * first quarter scales + second quarter scales = 10% * P 10000000 +…

Q: Backpack Co. was organized to sell a single product that carries a 45-day warranty againstdefects.…

A: Warranty expense: It can be defined as the cost that is associated with the commitment of the…

Q: Eastern Marketing sells split type air-conditioners. The company provides its customers an option to…

A: Note - The question contains multiple parts which are unrelated. So the first part has been solved.…

Q: Ecco Company sold $127,000 of ktchen appliances with six month warranties during September. The cost…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Ecco Company sold $128,000 of kitchen appliances with six-month warranties during September. The…

A: Estimated warranty liability = 7% of sales                                            = $128000 x 7%…

Q: Hadley Industries warrants its products for one year. The estimated product warranty expense is 4%…

A: Estimated warranty liability = 4% of sales                                            = $210000 x 4%…

Q: Quantas Industries sold $325,000 of consumer electronics during July under a nine-month warranty.…

A: a. Prepare the journal entry to record the estimated warranty expense on July 31 for July sales.

Q: A company sells its products subject to a warranty that covers the cost of parts for repairs during…

A: Warranty expenses = Sales for June x estimated Warranty costs  % = $450,000 x 6% = $27,000

Q: Cook-Rite Co. sold $512,000 of equipment during January under a two-year warranty. The cost to…

A: Product Warranty expense = Sales x % of estimated warranty = $512,000 x 5% = $25,600

Q: Lynford Company sold 10,500 dishwashers for $1,100 each during 2021. The dishwashers are under…

A: The warranty Expenses are estimated on the basis of sales made during the period and past year…

Q: Oven Roasted sold $394,000 of consumer electronics during July under a two-year warranty. The cost…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Carnes Electronics sells consumer electronics that carry a 90-day manufacturer’s warranty. At the…

A: 1. Identify whether the given situation represents loss contingency. This situation is not a loss…

Q: On December 1, Coronado Company introduces a new product that includes a one-year warranty on parts.…

A: Given units sold = 1,600 Estimated percentage of defective units = 5% Estimated defective units =…