Wall Welding Co. offers warranties on all products sold. Over the last several years, Wall’s warranty claims have approximated 3% of total sales. Wall’s currently has an Estimated Warranty Payable balance of $4,000, and sales for the year totaled $350,000. What is the amount of warranty expense recorded by Wall at year-end?

Answers

Answer 1
Answer:

Answer:

$10,500

Explanation:

Wall Welding should record warranty expense based on experience with past claims (3% of total sales). So if total sales were $350,000 you multiply that by 3% = $10,500.

The $4,000 left in the estimated warranty payable account belongs to previous years and should not alter the current year calculations.


Related Questions

The analysis of the competitive environment that has been conducted utilizes the work of:
Long-term goals cannot be accomplished immediately.
What is the meaning of cash in the balance sheet?
Jane is 22 years old. for her job, she needs to take an intelligence test. which would be the most appropriate test for her age group? (1 point)
The weighted-average method a. calculates an average unit cost by dividing the total cost of goods sold by the total units sold. b. calculates an average unit cost by dividing the total cost of goods available for sale by the total units of goods available for sale. c. calculates an average unit cost by adding the total cost of goods available for sale to the total units of goods available for sale. d. none of the above

Aurora Corporation operated without insurance coverage for the first month of 2019. Then, on February 1, 2019, the company paid the $4,800 premium on a two-year insurance policy with benefits beginning on that date. The company uses the accrual basis. How much insurance expense will be reported on the company's income statement for the year ended December 31, 2019? a) $200 b) $2,200 c) $4.600 d) $4,800

Answers

Answer:

Correct answer is letter B, $2,200

Explanation:

Using accrual basis method, revenue and expenses will be recognized when incurred.

The $4,800 is a 24 months policy, therefore we must compute the insurance expense applicable for the year covering from February 1 to December 31 (11 months)

An adjusting entry to recognize the expire portion of the insurance must be done at the year end in the amount of $2,200.

($4,800 / 24 months = $200 x 11 months = $2,200)

Globalization increases the interdependency of the world's countries. Inflation in one country would most likely

Answers

The correct answer for the question that is being presented above is this one: "D. relate to inflation in other countries." Globalization increases the interdependency of the world's countries. Inflation in one country would most likely relate to inflation in other countries.
Here are the following choices:
A. not impact inflation in other countries
B. cause deflation in other countries
c. result in stagflation in other countries
D. relate to inflation in other countries

Answer:

relate to inflation in other countries

Why do price discrimination and the existence of slightly different variants of the same product tend to go hand in hand? By introducing slightly different variants of the product, firms that price discriminate are able to

Answers

Options:

Separate buyers based on their income.

Separate buyers based on their willingness to pay.

Lower their profit.

Lower the marginal cost of producing an additional unit of output.

Answer:Lower the marginal cost of producing an additional unit of output.

Explanation:Price discrimination is a pricing strategy that gives different prices for the same kind of product. Price discrimination can be classified as first degree(charging of a different price for every unit consumed),second degree(involves charging different prices for different Quantity purchased) and third degree(charging of a different price to different consumer groups).

Through price discrimination, firms are able to make additional variants of the same product in order to Lower the marginal cost of producing an additional unit of output.

Final answer:

Price discrimination and the existence of slightly different variants of the same product go hand in hand because offering product variants allows firms to differentiate their offerings and justify varying prices based on consumer preferences and willingness to pay.

Explanation:

In economics, price discrimination refers to the practice of charging different prices for the same product or service to different groups of consumers. When firms engage in price discrimination, they often introduce slightly different variants or versions of the product in order to justify the price differences. This is because offering different variants allows firms to differentiate the products and create the perception of added value, which justifies the varying prices.

For example, a company may offer a basic version of a product at a lower price point, and a premium version with additional features at a higher price. By doing so, the company can target different segments of consumers based on their willingness to pay, maximizing their profits through price discrimination.

Overall, the existence of slightly different variants of the same product and price discrimination tend to go hand in hand because offering product variants is a strategy that enables firms to differentiate their offerings and capture different segments of the market at different price points.

Learn more about Price discrimination and product variants here:

brainly.com/question/15024553

#SPJ12

interview any business owner on how he/she ensures that the following elements of Total Quality Management (TQM)positively impact on his/her business

Answers

Hey there

Total Quality Management (TQM) is a comprehensive and structured approach to an organizational management. 

Total Quality Management refers to systems that focus on quality. Make the quality more better and less cheaper. The better the quality of the item, the better they will make a profit.   

The ________ manages all systems throughout the organization and the day-to-day operations of the entire IS organization. Question 1 options: 1) applications development manager

2) CIO

3) information center manager

4) IS Director

Answers

It should be noted that IS Director manages all systems throughout the organization and the day-to-day operations of the entire IS organization.

  • This IS Director is responsible for how the system is able to manage their resources in achieving tangible goal that has been set by the entire IS organization.

Therefore, option D is correct.

Learn more about IS Director at:

brainly.com/question/17583177

Answer:

The answer in this case would be option 4) or IS Director.

Explanation:

  • In an IS organization, one of the most important directorial duty or responsibility of an IS Director is to oversee the regular or normal day to day functioning of the organization to ensure effectiveness and efficiency of the regular operational activities or conducts.
  • An IS Director also manages all the relevant and concerned systems throughout the entire organization to facilitate the regular operational functioning of the organization.Therefore, the relevant duties and responsibilities of a IS Director mostly relates to operational aspects and system management.

Please Help!!Use the credit card information below and the designated method of computing interest to fill in the blanks. (See image)

Adjusted Balance Method-
Interest $______
New Balance $______

Answers

Average Daily Balance ≈ $475.42 Interest ≈ $4.75 New Balance ≈ $369.75

To calculate the interest and the new balance using the Adjusted Balance Method, you first need to find the average daily balance. The Adjusted Balance Method considers the balance after subtracting any payments made during the billing cycle. Here's how to calculate it:

1. Start with the previous balance: $500

2. Add the purchases made during the billing cycle:

  - May 12: $25

  - May 22: $100

  - May 30: $50

  Total purchases = $25 + $100 + $50 = $175

3. Subtract any payments made during the billing cycle:

  - May 20: $110

4. Calculate the average daily balance. To do this, you need to consider the number of days each balance was carried during the billing cycle. Assuming a 30-day billing cycle, here's how you calculate it:

  - For the first 8 days (May 1 to May 8), the balance is $500.

  - For the next 4 days (May 9 to May 12), the balance is $500 + $25 (May 12 purchase).

  - For the next 10 days (May 13 to May 22), the balance is $500 + $25 (May 12 purchase) + $100 (May 22 purchase).

  - For the last 8 days (May 23 to May 30), the balance is $500 + $25 (May 12 purchase) + $100 (May 22 purchase) + $50 (May 30 purchase) - $110 (May 20 payment).

5. Calculate the average daily balance by summing up the balances for each period and dividing by the total number of days in the billing cycle (30 days in this case).

Now that you have the average daily balance, you can calculate the interest using the monthly interest rate of 1% (12% per year):

Interest = Average Daily Balance * Monthly Interest Rate

New Balance = Previous Balance + Purchases - Payments + Interest

Please calculate the average daily balance and then use the interest formula to find the interest and update the new balance.

For such more questions on Average

brainly.com/question/130657

#SPJ3

Other Questions