Question: QUESTION 4 Techno Smart was organized to sell a single product for $2.400 per unit, including a 60-day warranty against defects. Engineering estimates indicate that

QUESTION 4 Techno Smart was organized to sell a single product for $2.400 per unit, including a 60-day warranty against defects. Engineering estimates indicate that 5% of the units sold will prove defective and require an average repair cost of $200 per unit. During the first month of operations, total sales were $768,000. Nine units sold in the first month were found defective and repaired that month, The accrued liability for product warranties at month-end should be: O A $3,200 B.$1,800 C. $4,600 D. $1,400

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Smart Technology, Inc. was organized to sell a single product for $1,200 per unit, including a 60-day warranty against defects. Engineering estimates indicate that 5% of the units sold will prove...

Pat Neff, Inc. was organized to sell a single product for $ 4 0 0 per unit, including a 6 0 - day warranty against defects. Engineering estimates indicate that 5 % of the units sold will prove...

1.Lotta Sound grants a 90-day warranty on all stereos. Historically, approximately 2.5% of all sales prove to be defective. Sales in June are $200,000. In July, $2,900 of defective units are returned...

2:09 Read Only - You can't save changes... 30. 2. Outback Camera Co. was organized to sell a single product that carries a 60-day warranty against defects. Engineering estimates indicate that 5% of...

Panaramic Co. was organized to sell a single product that carries a? 45-day warranty against defects. Engineering estimates indicate that 5?% of the units sold will prove defective and require an...

Capture Co. was organized to sell a single product that carries a 45-day warranty against defects. Engineering estimates indicate that 12% of the units sold will prove defective and require an...

Capture Co. was organized to sell a single product that carries a 45-day warranty against defects. Capture Co. was organized to sell a single product that carries a 45-day warranty against defects....

Expedition Co. was organized to sell a single product that carries a 45-day warranty against defects. Engineering estimates indicate that 8% of the units sold will prove defective and require an...

What amount should be Accrued for estimated warranty costs for the fist month? Pacific Lens Co. was organized to sell a single product that carries a 90-day warranty against defects. Engineering...

13 - One of the following conditions required for oscillation. : a. The voltage gain around the feedback loop must be greater than 1 b. The voltage gain around the feedback loop must be less than 1...

Lake Corporation has received an order for handheld computers from Union, LLC. A partially complete bill of activities for that order appears below. Fill in the missingdata. Lake Corporation Blli of...

Terry was ill for three months and missed work during this period. During the iliness, Terry recelved $ 4 , 7 0 0 in sick pay from a disability Insurance policy. What amounts are included in Terry's...

Scenario: A Multi-national Corporation called The Globe has created a subsidiary called Thirst in an under-developed country called non-potable waters. This hosting country suffers from a severe...

Middle-level managers in India espouse a greater belief in change and are less conservative than their American counterparts at this level.

People are becoming the principal instrument in delivering service to the customer, particularly as the service industry grows in importance.

Successful techniques are focusing directly on people instead of technologies or processes, operating on the principle that devising systems for getting the best out of people will automatically...