Use the following information for the next three (3) questions: Serpent Home Depot carries wide variety...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Use the following information for the next three (3) questions: Serpent Home Depot carries wide variety of promotional techniques to attract customers. Kitchen and home aopliances are sold in a one-year warranty for replacement of parts and labor. The estimated warranty cost, based on past experience is 5% of sales. The premium is offered on the home furniture. Customer receive a coupon for each peso spent on home furniture. Customers may exchange 2,000 coupons and P50 for a rice cooker which company purchased at P340 for each rice cooker and estimates that 60% of the coupons given to customers will be redeemed. The company's total sales for 2016 were P115,200,000 - P86,400,000 from kitchen and home appliances and P28,800,000 from home furniture. Replacement parts and labor for warranty work totaled P2,624,000 during 2016. A total of 5,200 rice cookers used in the premium program were purchased during the year and there were 9,600,000 coupons redeemed in 2016. The accrual method is used by the company to account for the warranty and premium costs for financial reporting purposes. The balance in the accounts related to warranties and premiums on January 1, 2016, were as shown below: Inventory of premium items Estimated liabilities for premium Estimated liabilities for warranties 340,000 716,000 2,176,000 7) Promotional expense related to premiums for the current year 2016 is A. 1,392,000 B. 1,632,000 C. 2,505,600 D. 2,937,600 8) Estimated liabilities for premiums as of December 31, 2016 is A. 716,000 B. 1,829,600 C. 2,021,600 D. 1,589,600 9) Estimated liabilities for warranties as of December 31, 2016 is A. 2,624,000 B. 3,872,000 C. 4,320,000 D. 5,312,000 Use the following information for the next three (3) questions: Serpent Home Depot carries wide variety of promotional techniques to attract customers. Kitchen and home aopliances are sold in a one-year warranty for replacement of parts and labor. The estimated warranty cost, based on past experience is 5% of sales. The premium is offered on the home furniture. Customer receive a coupon for each peso spent on home furniture. Customers may exchange 2,000 coupons and P50 for a rice cooker which company purchased at P340 for each rice cooker and estimates that 60% of the coupons given to customers will be redeemed. The company's total sales for 2016 were P115,200,000 - P86,400,000 from kitchen and home appliances and P28,800,000 from home furniture. Replacement parts and labor for warranty work totaled P2,624,000 during 2016. A total of 5,200 rice cookers used in the premium program were purchased during the year and there were 9,600,000 coupons redeemed in 2016. The accrual method is used by the company to account for the warranty and premium costs for financial reporting purposes. The balance in the accounts related to warranties and premiums on January 1, 2016, were as shown below: Inventory of premium items Estimated liabilities for premium Estimated liabilities for warranties 340,000 716,000 2,176,000 7) Promotional expense related to premiums for the current year 2016 is A. 1,392,000 B. 1,632,000 C. 2,505,600 D. 2,937,600 8) Estimated liabilities for premiums as of December 31, 2016 is A. 716,000 B. 1,829,600 C. 2,021,600 D. 1,589,600 9) Estimated liabilities for warranties as of December 31, 2016 is A. 2,624,000 B. 3,872,000 C. 4,320,000 D. 5,312,000
Expert Answer:
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
Students also viewed these accounting questions
-
Use the following information for the next three problems, PV of Year Cash Flow Cash Flows 1 $14,000 $12,726 2 $14,000 $11,564 3 $10,000 $7,510 4 $10,000 $6,830 5 $8,000 $4,968 A). What is the NPV of...
-
Use the following information for the next three (3) questions: Ralts Company decided to offer a bonus to its branch manager at 20% of net income earned by the branch during the current year. The...
-
Use the following information for the next five questions. Suppose that in a well- functioning competitive market, demand is given by the equation P = 1.050 - 0.5Q, private-cost supply is given by...
-
Name the following compounds, and indicate whether each is a reducing sugar or a nonreducing sugar: a. b. c. d. CH,OH HO OCH2CH2CH3 OH HO CH2OH OCH3 - HOCH OCH2CH3 CH OH OH OH
-
Dubois Limited is a Vancouver- based private company established 30 years ago. Until very recently, all 16 of the shareholders have been relatives of the founder, Blanche Dubois. The company has been...
-
Explain why each of the following chemical equations is not a correct formation reaction. (a) 4 Al(s) + 3 O 2 (g) 2 Al 2 O 3 (s) (b) N 2 (g) +3/2 H 2 (g) NH 3 (g) (c) 2 Na(s) + O(g) Na 2 O(s)
-
For the reactor-distillation process in Example 22.5, recompute the solution when the reactor and column volumes are decreased by \(20 \%\). Data From Example 22.5:- Equation 22.9 and 22.11:- Figure...
-
A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon and sells for $985. a. What is its yield to maturity (YTM)? b. Assume that the yield to maturity remains constant for the...
-
Consider a derivative (1) of salvianolic acid B, an antioxidant and free radical scavenging compound from the root of Salvia miltiorrhiza Bunge, shown below. Answer parts i.- vii. on that molecule or...
-
Emily Jackson (Social Security number 765-12-4326) and James Stewart (Social Security number 466-74-9932) are partners in a partnership that owns and operates a barber shop. The partnership's first...
-
Find a current (no more than 6 months old) article, video, item, post, tweet, etc. that is related to Applied Research Methods. Post the link and a description of the topic, and your conclusion.
-
Briefly describe Stage II of turning a business idea into a real product.
-
List and explain the major business strategies.
-
Compare the advantages of buying an existing business and starting it up from zero.
-
What are the two approaches to estimate the value of a business? List the methods of estimation in each approach.
-
Explain with an example Reilly's Law of Retail Gravitation.
-
In the World Press Photo report "The Integrity of the Image," David Campbell investigated whether there were cultural differences around the world about the ethics of editing news images. 1) How do...
-
suppose a nickel-contaminated soil 15 cm deep contained 800 mg/kg Ni, Vegetation was planted to remove the nickel by phytoremediation. The above-ground plant parts average 1% Ni on a dry-weight bas...
-
This problem is a continuation of P5-35. Mortar Corporation acquired 80 percent ownership of Granite Company on January 1, 20X7, for $173,000. At that date, the fair value of the noncontrolling...
-
How are rights, warrants, and options of subsidiary companies treated in the computation of consolidated EPS?
-
Name Brand Company is to be liquidated under Chapter 7 of the Bankruptcy Code. The balance sheet on July 31, 20X1, follows: Additional Information 1. Marketable securities consist of 1,000 shares of...
-
What are the four main consumer rights?
-
Identify the four levels of a company's ethical environment.
-
What is meant by social responsibility, and why do companies exercise it?
Study smarter with the SolutionInn App