On Nov 10, 2017 Singh Electronics began to buy and resell scanners for $55 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 companys cost for a new scanner is only $35. Sing estimates warranty costs based on 18% of the number of units sold. The following transactions occurred in 2017 and 2018 (ignore GST AND PST):Nov 15 – sold 2000 scanners for 110000 cash30 – recognized warranty expense for Nov with an adjusting entryDec 8 – Replaced 150 scanners that were returned under the warranty15 – sold 5500 scanners29 – replaced 40 scanners that were returned under the warranty31 – recognized warranty expense for Dec with an adjusting entry2018Jan 14 – sold 275 scanners20- replaced 63 scanners that were returned under the warranty31 – recognized warranty expense for Jan with an adjusting entry.required:how much warranty expense should be reported for Nov and Dec 2017?How much warranty expense should be reported for Jan 2018?what is the balance of the estimated warranty liability as of Dec 31, 2017?what is the balance of the estimated warranty liability as of Jan 31, 2018?Prepare journal entries to record the transactions and adjustments (ignore sales tax)
RECOMMENDED!!On Nov 10, 2017 Singh Electronics began
How it works
- Paste your instructions in the instructions box. You can also attach an instructions file
- Select the writer category, deadline, education level and review the instructions
- Make a payment for the order to be assignment to a writer
- Download the paper after the writer uploads it
Will the writer plagiarize my essay?
You will get a plagiarism-free paper and you can get an originality report upon request.
Is this service safe?
All the personal information is confidential and we have 100% safe payment methods. We also guarantee good grades
Recent Comments