Doberman Incorporated started selling Ipad with a four-year warranty against factory defects in 2014. Estimated warranty...
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Doberman Incorporated started selling Ipad with a four-year warranty against factory defects in 2014. Estimated warranty costs related to pesos sales are as follows: 1% of sales in the year of sale, 2% of sales in the year after sale, 4% of sales two years after sale and 7% of sales three years after sale. Information relating to sales and actual warranty expenditures for the year 2014 through 2017 is as follows: Year Sales Actual Warranty Expenditure P 110,600 2014 P 3,280,000 2015 4,320,500 200,480 2016 4,585,800 310,690 2017 5,320,300 400,480 15) How much is the warranty expense in 2016? A. 1,084,340 B. 642,012 C. 310,690 D. 263,476 16) How much is the estimated liability for warranty at December 31, 2017? A. 1,428,702 B. 744,842 C. 344,362 D. 146,873 17) Danica Company estimates its annual warranty expense as 4% of annual net sales. The following data relate to the calendar year 2014: Net sales ? Warranty liability account: 10,000 Balance, 12/31/14 (debit, before adjustment) Balance, 12/31/14 (credit, after adjustment) 50,000 What is the amount of net sales for the current year? A. 750,000 C. 1,500,000 B. 632,812 D. 1,000,000 Doberman Incorporated started selling Ipad with a four-year warranty against factory defects in 2014. Estimated warranty costs related to pesos sales are as follows: 1% of sales in the year of sale, 2% of sales in the year after sale, 4% of sales two years after sale and 7% of sales three years after sale. Information relating to sales and actual warranty expenditures for the year 2014 through 2017 is as follows: Year Sales Actual Warranty Expenditure P 110,600 2014 P 3,280,000 2015 4,320,500 200,480 2016 4,585,800 310,690 2017 5,320,300 400,480 15) How much is the warranty expense in 2016? A. 1,084,340 B. 642,012 C. 310,690 D. 263,476 16) How much is the estimated liability for warranty at December 31, 2017? A. 1,428,702 B. 744,842 C. 344,362 D. 146,873 17) Danica Company estimates its annual warranty expense as 4% of annual net sales. The following data relate to the calendar year 2014: Net sales ? Warranty liability account: 10,000 Balance, 12/31/14 (debit, before adjustment) Balance, 12/31/14 (credit, after adjustment) 50,000 What is the amount of net sales for the current year? A. 750,000 C. 1,500,000 B. 632,812 D. 1,000,000
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Answer b 642012 Explanation To calculate warranty expense in 2016 Sales ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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