Lawrence Sales Corporation offers warranties on all their electronic goods
Warranty expense is estimated at 3% of sales revenue. In 2017, the company had $603,000 in sales. In the same year, Lawrence Sales replaced defective goods with a cost of $16,500. Which of the following is the entry needed to record the replacement of the defective goods?
A)
Estimated Warranty Payable 16,500
Merchandise Inventory 16,500
B)
Warranty Expense 16,500
Estimated Warranty Payable 16,500
C)
Warranty Expense 18,090
Estimated Warranty Payable 18,090
D)
Warranty Expense 18,090
Merchandise Inventory 18,090
A
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The sensitivity range for a constraint quantity value is also the range over which the ________ is valid
Fill in the blank with correct word.
Potash Corporation financed the purchase of a building by making semiannual payments of $20,000 a year for the next twenty years, with the first payment due one year from today. The purchase cost of the building is considered to be the present value of those payments. What was the purchase cost of the building to Potash assuming an annual interest rate of 10%?
A) $363,636 B) $343,182 C) $192,883 D) $170,271