Tech it Easy (TECH) sells computers and laptops. Tech includes a four-year warranty on each computer/Ipad...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Tech it Easy (TECH) sells computers and laptops. Tech includes a four-year warranty on each computer/Ipad they sell. Management estimates that the cost of providing the warranty coverage is 5% of sales in the first year and 1% of sales in each of years two and three and 1% in year four. Other facts follow: . . . . . The cost to TECH of meeting their warranty claims in 2024 was $168,000; $80,800 for parts and $87,200 for labor. TECH's sales for 2025 were $1,975,000. The cost to TECH of meeting their warranty claims in 2025 was $154,000; $95,000 for parts and $59,000 for labor. What is the balance of the warranty payable account at December 31, 2025? . TECH reported a $180,000 provision for warranty payable on its December 31, 2022 balance sheet. TECHS sales for 2023 were $3,780,000 The cost to TECH of meeting their warranty claims in 2023 was $320,000; $180,000 for parts and $240,000 for labor. TECH's sales for 2024 were $2,890,000. . Tech it Easy (TECH) sells computers and laptops. Tech includes a four-year warranty on each computer/Ipad they sell. Management estimates that the cost of providing the warranty coverage is 5% of sales in the first year and 1% of sales in each of years two and three and 1% in year four. Other facts follow: . . . . . The cost to TECH of meeting their warranty claims in 2024 was $168,000; $80,800 for parts and $87,200 for labor. TECH's sales for 2025 were $1,975,000. The cost to TECH of meeting their warranty claims in 2025 was $154,000; $95,000 for parts and $59,000 for labor. What is the balance of the warranty payable account at December 31, 2025? . TECH reported a $180,000 provision for warranty payable on its December 31, 2022 balance sheet. TECHS sales for 2023 were $3,780,000 The cost to TECH of meeting their warranty claims in 2023 was $320,000; $180,000 for parts and $240,000 for labor. TECH's sales for 2024 were $2,890,000. .
Expert Answer:
Answer rating: 100% (QA)
To calculate the balance of the warranty payable account at December 31 2025 we need to account for ... View the full answer
Related Book For
Understanding Financial Accounting
ISBN: 9781119406921
2nd Canadian Edition
Authors: Christopher D. Burnley
Posted Date:
Students also viewed these accounting questions
-
SST Jetski Corp. has sold motorized watercraft for a number of years. SST includes a three-year warranty on each watercraft they sell. Management estimates that the cost of providing the warranty...
-
The Taos Museum of Southwestern Arts and Crafts (TMSAC) presents rotating exhibits of the works of artists and artisans from the Southwestern United States. Historically, the museum has derived its...
-
Genevieve Shannara has always wanted to open her own kennel and grooming services; she had been grooming pets for friends and family from her apartment for extra cash since high school. When the...
-
Prove that, the area of the traverse is equal to the algebraic sum of the products of the total latitude of each point and algebraic sum of the departures of the lines meeting at that point.
-
The bell crank fits loosely into a 0.5-in-diameter pin. If P = 41 lb, the bell crank is then on the verge of rotating counterclockwise. Determine the coefficient of static friction between the pin...
-
Although many employees enjoy the flexibility of working lots of part-time jobs or working for a series of employers on a temporary basis, it comes at a cost: Such employees often make low wages,...
-
A ring is attached at the center of the underside of a trampoline. A sneaky teenager crawls under the trampoline and uses the ring to pull the trampoline slowly down while his \(75-\mathrm{kg}\)...
-
The following summary data are from the May 31, 2007, balance sheet of FedEx. All numbers are in millions. Total current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
-
1.The First National Bank's Assets and Liabilities are given in the following table Assets $250M Liabilities $205M Equity $45M TOTAL $250M TOTAL $250M The duration of the assets is 5 years and the...
-
You work in the human resources department of your company helping new employees fill out the necessary paperwork to get their first paycheck. There are a number of decisions that employees must make...
-
The Strategic Management Process Model (SMPM) is an application of classic systems theory; that is, the model uses a systems theory backbone (inputs, transformation, outputs, and feedback) with...
-
Define real GDP and discuss the relationship between real GDP and the quantity of labor.
-
What are the disadvantages of a career of Consular Fellow at the U.S. Department of State?
-
Unit cost data should be from a credible source, like a licensed builder. What else needs to be done with the unit cost data?
-
The aluminum alloy [G= 4,000 ksi] pipe shown in Figure P6.48 is fixed to the wall support at C. The bolt holes in the flange at A were supposed to align with mating holes in the wall support;...
-
At a price of $17.50 to play 18 holes on a golf course, 145 consumers pay to play a game of golf each day. Increasing the price to $22.00 causes the number of consumers to decline to 105. What is the...
-
Prepare the Statement of Owners Equity from the Adjusted Trial Balance and Income Statement. Within each section of the statement, enter the accounts in the Chart of Accounts order and the account...
-
Swifty company is a publicly held corporation whose $1 par value stock is actively traded at $30 per share. The company issued 3400 shares of stock to acquire land recently advertised at $93000. When...
-
Two companies in the transportation industry had the following information: Required a. Calculate the P/E ratios for both companies and comment on which is more affordable from that perspective. b....
-
Explain whether the costs related to hiring and training a companys employees are considered to be an operating or investing activity.
-
You are studying with some classmates and are reviewing each others responses to the following questions: Why do companies off er sales discounts to customers? How would a sales discount 1/10; n/45...
-
The accounting records of the Happy Tickers Sports and Social Club are in a mess. You manage to find the following information to help you prepare the accounts for the year to 31 December 2015. (1)...
-
The Milham Theatre Club has been in existence for a number of years. Members pay an annual subscription of 15 which entitles them to join trips to professional productions at a reduced rate. On 1...
-
Place a tick in the appropriate column for each of the following cost items: (a) Purchases of raw materials (b) Direct wages (c) General factory expenses (d) Depreciation of machinery (e) Commission...
Rogues True Stories Of Grifters Killers Rebels And Crooks 1st Edition - ISBN: 0593467736 - Free Book
Study smarter with the SolutionInn App