In 2016, Morton Cosold 150 hot air balloons at $4,000 each. The balloons carry a 5-year warranty for defects. Morton estimates that repair costs will average 4% of the total selling price. The estimated warranty liability at the beginning of the year was $14,000 . $20,000 in claims was actually incurred during the year to honor their warranty. What was the warranty expense for 2016?
a. $10,000
b. $18,000
c. $20,000
d. $24,000
d
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If after aging the accounts receivables, it is estimated that $1,800 will not be collected and the allowance account has an existing credit balance of $300, the adjusting entry would be for the amount of $1,500
a. True b. False Indicate whether the statement is true or false
An aging of accounts receivable is useful in estimating the reasonableness of the allowance for doubtful accounts
a. True b. False Indicate whether the statement is true or false
How does the text define “assessment” with respect to the assessment of ethics training workshops?
a. a systemic review of the collective improvement in moral identity of a group of people as a result of an ethics training workshop b. a systemic collection, review, and use of information to determine workshop effectiveness c. a systemic collection of measurements to determine the ethical makeup of a group of people d. the establishment of a benchmark of ethics knowledge and value in a workforce undergoing training
The ________ is a measure of how many times a company sells its inventory in a period.
What will be an ideal response?