Homework Answers
Ans.
Journal entry to be recorded at end of 2018
DR warranty expense $3.8b CR warranty Payable $ 3.8b
| Date | Particulars | DR | CR |
| 2018 | Warranty Expenses A/c | $ 3.8b | |
| To Warranty Payable A/c | $ 3.8b |
Journal Entry to be recorded at the end of 2019
DR Warranty Payable $ 3.7b CR Cash $ 3.7b
| Date | Particulars | DR | CR |
| 2019 | Warranty Payable A/c | $ 3.7b | |
| To Cash A/c | $ 3.7b |
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The first image is the original question, the following images are the answer choices given for...
The first image is the original question, the following images
are the answer choices given for each box
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for its warranty expenses. Arctica offers a one-year warranty
covering parts on each snowmobile it sells. The following Tableau
Dashboard is provided to assist us.
Estimated Warranty Expense vs. Actual Warranty Claims
Purple Graph
Actual warranty claim: $17,660 (1 year ago)
Actual warranty claim: $21,660 (2 years ago)
Actual warranty claim: $13,070 (3 years ago)
Actual warranty claim: $12,122 (4 years ago)
Orange Graph
Estimated warranty expense: $14,800 (1...
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The first image is the original question, the following images
are the answer choices given for each box
Question 3 1 pts Apple, Inc. offers a 1 year warranty on its Apple products. In 2018 Apple estimated $3.8b in warranty claims for phones they sold in 2018. During 2019 Apple incurred $3.7b expenses to satisfy warranty claims. What journal entry does Apple record at the end of 2018? [Select] What journal entry does Apple record in 2019? [Select] Question 3...
Northwest Electric had cash sales for the month totaling $90,000. Northwest offers a 6-month warranty on its services. If Northwest estimates warranty claims will equal 4% of sales, what is the journal entry to record the estimated warranty expense for the month? O A Debit Warranty expense, $3,600; credit Sales revenue. $3,600 OB. Debit Estimated warranty payable, $3,600; credit Warranty expense, $3,600 OC. Debit Warranty expense, $3,600; credit Estimated warranty payable, $3,600 OD. Debit Warranty expense, $3,600; credit Cash, $3,600
We are hired as consultants to assist Arctica Co. in accounting
for its warranty expenses. Arctica offers a one-year warranty
covering parts on each snowmobile it sells. The following Tableau
Dashboard is provided to assist us.
Estimated Warranty Expense vs. Actual Warranty Claims
Purple Graph
Actual warranty claim: $17,660 (1 year ago)
Actual warranty claim: $21,660 (2 years ago)
Actual warranty claim: $13,070 (3 years ago)
Actual warranty claim: $12,122 (4 years ago)
Orange Graph
Estimated warranty expense: $14,800 (1...
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