On November 10, 2020, Singh Electronics began to buy and resell scanners for $52 each. Singh...

 

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On November 10, 2020, Singh Electronics began to buy and resell scanners for $52 each. Singh uses the perpetual system to account for inventories. The scanners are covered under a warranty that requires the company to replace any non-working scanner within 90 days. When a scanner is returned, the company simply throws it away and mails a new one from inventory to the customer. The company's cost for a new scanner is only $32. Singh estimates warranty costs based on 12% of the number of units sold. The following transactions occurred in 2020 and 2021 (ignore GST and PST): Nov. Dec. Jan. Required: 2020 15 Sold 3,500 scanners for $182,000 cash. 30 Recognized warranty expense for November with an adjusting entry. 8 Replaced 130 scanners that were returned under the warranty. 15 Sold 7,500 scanners. 29 Replaced 36 scanners that were returned under the warranty. 31 Recognized warranty expense for December with an adjusting entry. 2021 14 Sold 375 scanners. 20 Replaced 48 scanners that were returned under the warranty. 31 Recognized warranty expense for January with an adjusting entry. 1. How much warranty expense should be reported for November and December 2020? Warranty Expense November December $ 13,440 28,800 Total $ 42,240 2. How much warranty expense should be reported for January 2021? (Round your intermediate calculations and final answer to the nearest whole number.) Warranty expense 3. What is the balance of the estimated warranty liability as of December 31, 2020? Warranty expense for November Warranty expense for December Cost of replacing items in December Liability balance 4. What is the balance of the estimated warranty liability as of January 31, 2021? Beginning balance Warranty expense for January Cost of replacing items in January Liability balance 5. Prepare journal entries to record ALL transactions and year-end adjustments (ignore sales taxes). (Round intermediate calculations and final answer to the nearest whole number.) View transaction list Journal entry worksheet 8 10 11 12 Record the scanner warranty expense and liability at 12% of the units sold. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2020 Warranty expense Estimated warranty liability Record entry Clear entry View general journal On November 10, 2020, Singh Electronics began to buy and resell scanners for $52 each. Singh uses the perpetual system to account for inventories. The scanners are covered under a warranty that requires the company to replace any non-working scanner within 90 days. When a scanner is returned, the company simply throws it away and mails a new one from inventory to the customer. The company's cost for a new scanner is only $32. Singh estimates warranty costs based on 12% of the number of units sold. The following transactions occurred in 2020 and 2021 (ignore GST and PST): Nov. Dec. Jan. Required: 2020 15 Sold 3,500 scanners for $182,000 cash. 30 Recognized warranty expense for November with an adjusting entry. 8 Replaced 130 scanners that were returned under the warranty. 15 Sold 7,500 scanners. 29 Replaced 36 scanners that were returned under the warranty. 31 Recognized warranty expense for December with an adjusting entry. 2021 14 Sold 375 scanners. 20 Replaced 48 scanners that were returned under the warranty. 31 Recognized warranty expense for January with an adjusting entry. 1. How much warranty expense should be reported for November and December 2020? Warranty Expense November December $ 13,440 28,800 Total $ 42,240 2. How much warranty expense should be reported for January 2021? (Round your intermediate calculations and final answer to the nearest whole number.) Warranty expense 3. What is the balance of the estimated warranty liability as of December 31, 2020? Warranty expense for November Warranty expense for December Cost of replacing items in December Liability balance 4. What is the balance of the estimated warranty liability as of January 31, 2021? Beginning balance Warranty expense for January Cost of replacing items in January Liability balance 5. Prepare journal entries to record ALL transactions and year-end adjustments (ignore sales taxes). (Round intermediate calculations and final answer to the nearest whole number.) View transaction list Journal entry worksheet 8 10 11 12 Record the scanner warranty expense and liability at 12% of the units sold. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2020 Warranty expense Estimated warranty liability Record entry Clear entry View general journal