Cycle Sales Company offers warranties on all their bikes. They estimate warranty expense at 3.5% of sales. At the beginning of 2019, the Estimated Warranty Payable account had a credit balance of $1400. During the year, Cycle Sales had $299,000 in sales and had to pay out $5900 in warranty payments. How much Warranty Expense will be reported on the 2019 income statement?
A) $5965
B) $7300
C) $9065
D) $10,465
D) $10,465
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Spitzer Corporation manufactures supplies for dry cleaning services. On October 1, 2017, it purchased a new machine at a cost of $10 million. For financial reporting purposes, it depreciates the machine over its expected useful life of 20 years on a straight-line basis with no salvage value. Because of the timing of the purchase, depreciation is taken for one-fourth of a year in 2017.For tax purposes, the machine qualifies as "10-year property." For 10-year property, depreciation rates (all as a percentage of the initial investment) are 10% in the year the property was acquired, 18% the next year, then 14.4%, 11.52%, 9.22%, 7.37%, 6.55%, 6.55%, 6.56%, 6.55%, 3.28%. Note that depreciation of 10% is taken for tax purposes in the year of acquisition regardless of when during the year the
asset was acquired.Ignore any deferred tax items that arise from any other sources. Assume a 40% tax rate. Required: What is the amount of Spitzer's depreciation expense for financial reporting purposes in 2017? What is the amount of Spitzer's depreciation expense for tax purposes in 2017? What is the amount of Spitzer's depreciation expense for financial reporting purposes in 2018? What is the amount of Spitzer's depreciation expense for tax purposes in 2018? Determine whether Spitzer has a deferred tax asset or a deferred tax liability as of December 31, 2017. What is the balance of this item at December 31, 2017? What is the amount of Spitzer's deferred tax asset or deferred tax liability as of December 31, 2018? What is the amount of the deferred portion of Spitzer's 2018 income tax expense? What will be an ideal response?
A model of relationships that suggests that we perceive our relationships, including our romantic ones, as escalating/intensifying, stabilizing, or deteriorating/atrophying over time as we grow closer and more intimate, was developed by which of the following?
A. Knapp and Vangelisti B. Martin and Lewis C. Rawlins and Sternberg D. Rodgers and Hammerstein
To avoid problems in the appraisal process, which of the following should generally be minimized?
A. Evaluation of individual traits B. Evaluation of effective behaviors demonstrated C. Evaluation of individual results D. Evaluation of group results E. Evaluation of ineffective behaviors demonstrated
A journal entry in which the Rent Expense account is debited and the Prepaid Rent account is credited represents an adjusting entry for a(n):
a. accrued revenue. b. deferred revenue. c. accrued expense. d. deferred expense.