Inker manufactures portable batteries for mobile devices and has a large presence globally. A senior accountant...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Inker manufactures portable batteries for mobile devices and has a large presence globally. A senior accountant at Inker has approached you for advice on the following issues. The manufacturing process of portable batteries has significantly improved over the last few years, however some manufacturing defects remain. Inker estimates that 95% of products sold would have no defects. If all minor defects were detected, it would cost the business 1% of total sales revenue and if all major defects were detected it would cost the business 4% of total sales revenue in warranty expenses. Total sales recorded for the year ended 30 June 2021 amounted to $15,779,940 (GST Inclusive). On 17 September 2021, one of Inker's largest customers claimed warranties of $50,000 and was reimbursed on the same day. Half of that amount was settled in cash and the remaining half - in battery parts. Required: Record the warranty expense for the year ended 30 June 2021 and the warranty claimed on 17 September 2021 in the General Journal below. GST needs to be accounted for. Narrations are not required. Inker manufactures portable batteries for mobile devices and has a large presence globally. A senior accountant at Inker has approached you for advice on the following issues. The manufacturing process of portable batteries has significantly improved over the last few years, however some manufacturing defects remain. Inker estimates that 95% of products sold would have no defects. If all minor defects were detected, it would cost the business 1% of total sales revenue and if all major defects were detected it would cost the business 4% of total sales revenue in warranty expenses. Total sales recorded for the year ended 30 June 2021 amounted to $15,779,940 (GST Inclusive). On 17 September 2021, one of Inker's largest customers claimed warranties of $50,000 and was reimbursed on the same day. Half of that amount was settled in cash and the remaining half - in battery parts. Required: Record the warranty expense for the year ended 30 June 2021 and the warranty claimed on 17 September 2021 in the General Journal below. GST needs to be accounted for. Narrations are not required.
Expert Answer:
Answer rating: 100% (QA)
General Journal AS AT 30062021 Particulars Sales Made during the year Warrant f... View the full answer
Related Book For
Posted Date:
Students also viewed these marketing questions
-
It appears that the value relevance of reported earnings, as measured by R2 or ERC, is low, and possibly falling over time. Use single- person decision theory to explain why the value relevance of...
-
It appears that the imports of carbon black have been increasing by about 10% annually. a. Determine the logarithmic trend equation. b. By what percent did imports increase, on the average, during...
-
It appears that the sky is the limit regarding ideas for smart phone/tablet apps. In a small group, create an idea for a new app related to (1) business, (2) health; (3) education, (4) sports, and...
-
Describe at least one method by which the organization can reduce change resistance?
-
Select a popular ad campaign and explain whether it should have tested different creative strategy options or different creative tactic options?
-
For the arrangement of forces in Problem 117, a 2.00 kg particle is released at x = 5.00 m with an initial velocity of 3.45 m/s in the negative direction of the x axis.(a) If the particle can reach x...
-
Refer to the information in QS 19-16. The company sells its product for $50 per unit. Due to new regulations, the company must now incur $2 per unit of hazardous waste disposal costs and $8,500 per...
-
Consider the bill of materials (BOM) in Figure. a. How many immediate parents tone level above) does Item 1 have? How many immediate parents does item E have? b. How many unique components does...
-
A bug sits on a record moving at a constant angular speed of 0 = 3.5 rad/s. Starting at t = 0 s, the record player is turned off and is given a constant angular acceleration of = 1.0 rad/s 2 . The...
-
Consider incompressible flow in the entrance of a circular tube, as in Fig. P3.53, the inlet flow is uniform, u1 = Uo. The flow at section 2 is developed pipe flow. Find the wall drag force F as a...
-
Kalmia Corporation has issued 440,000 common shares with a declared value of $5.Authorized 600,000 shares.The paid-up capital in excess of par for the common shares is $800,000.The corporation...
-
How many ml of 0.58 M sodium hydroxide solution should be required to neutralize 2.5 L of a hydrobromic acid solution that has a concentration of 4.22 mM?
-
Is this the right way to think about principles of justice? Should laws always be blind to the differences between people and always treat them equally? What are the strengths and weaknesses of...
-
Show the effect of the transaction above for Rev Cars (9) e Discuss the differences between closing and opening stock as per Section 22 of the Income Tax Act (6)
-
Should everyone have guaranteed retirement income? Why or why not?
-
Should law govern society, or the reverse? Should law shape society, or should society and hope for improvement operate to shape the law? What are the strengths and weaknesses of legal realism?...
-
What is socialization? Provide an example of socialization. How do social psychologists discuss and understand socialization? Describe in detail the psychological and social factors
-
Suppose Green Network Energy needs to raise money to finance its new manufacturing facility, but their CFO does not think the company is financially capable of making the periodic interest payments...
-
IAS 1 recognizes the need for full disclosure of the components of reported net income. Explain why full disclosure of net income components is important if investors are to properly interpret the...
-
In Section 1.2, we noted a provision of the 2002 Sarbanes- Oxley Act ( SOX) namely, the requirement for the CEO and Chief Financial Officer ( CFO) of public companies to certify the proper operation...
-
The Globe and Mail reported on Imperial Oil Ltd. s earnings for the third quarter ended on September 30, 2000, released on October 18, 2000. Net income was a record $ 374 million, up from $ 191...
-
The things that might lead a person to quit might not be the same things that lead a person to stay with an organization. For example, another job offer or the tendency to always be looking for new...
-
Divide the team into three groups. Each group will choose value, brand, or retention equity. Or, if team sizes are smaller, each team will select an equity component. For each equity component,...
-
Generate survey or interview items that would capture value-, brand-, or retention-equity levels in workers. If possible, ask a sample of your friends and neighbors to take a survey based on your...
Study smarter with the SolutionInn App