During August, Boxer Company sells $356,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $12,800 before adjustment. Customers returned merchandise for warranty repairs during the month that used $9,400 in parts for repairs. The entry to record the customer warranty repairs is:
A. Debit Warranty Expense $14,400; credit Estimated Warranty Liability $14,400.
B. Debit Warranty Expense $9,400; credit Estimated Warranty Liability $9,400.
C. Debit Estimated Warranty Liability $17,800; credit Parts Inventory $17,800.
D. Debit Estimated Warranty Liability $9,400; credit Parts Inventory $9,400.
E. Debit Warranty Expense $17,800; credit Estimated Warranty Liability $17,800.
Answer: D
You might also like to view...
A rise in the price level, everything else remaining unchanged, causes short-run aggregate supply to
A. decline. B. not change. C. increase. D. rise at first, then decline later.
Factor analysis can be used in which of the following circumstances?
A) To identify underlying dimensions, or factors, that explain the correlations among a set of variables. B) To identify a new, smaller set of uncorrelated variables to replace the original set of correlated variables in subsequent multivariate analysis. C) To identify a smaller set of salient variables from a larger set for use in subsequent multivariate analysis. D) All are correct circumstances.
Self-leadership can do which of the following?
a. Increase understanding of our psychological world but not how we deal with it b. Not impact our psychological world c. Decrease understanding of psychological world and how we deal with it d. Increase understanding of our psychological world and how we deal with it
________ advertising promotes the company as a whole instead of the firm's individual products
A) Advocacy B) Public service C) Public relations D) Corporate E) Testimonial