For customers, the benefits of direct marketing are being able to shop online anytime and anywhere

Not all EC investments need to be formally justified. Each of the following is a case where formal evaluation may not be needed except

A) when the value of the investment is relatively small for the organization. B) when competitors have made that type of investment. C) when the relevant data are not available, are inaccurate, or are too volatile. D) when the EC project is mandated and must be done regardless of the costs and benefits.

Big Dots provides a one-year warranty with all its products it sells. It estimates that it will sell 350,000 units of its product for the year ended December 31, 2016, and that its total revenue for the product will be $105,000,000. It also estimates that 75% of the product will have no defects, 5% will have major defects, and 20% will have minor defects. The cost of a minor defect is estimated

to be $6 for each product repaired, and the cost for a major defect cost is about $21. The company also estimates that the minimum amount of warranty expense will be $1,500,000 and the maximum will be $6,000,000. a. Prepare the journal entry for 2016 under the warranty. b. Prepare the journal entry to record the sale of 600,000 cans of soup. c. Prepare the journal entry to estimate the premium expense for 2016. d. Prepare the journal entry to record the redemption of 180,000 labels. What will be an ideal response?