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scoundrel [369]
2 years ago
15

Entertainment Tonight, Inc. manufactures and sells stereo systems that include an assurance-type warranty for the first 90 days.

Entertainment Tonight also offers an optional extended coverage plan under which it will repair or replace any defective part for 2 years beyond the expiration of the assurance-type warranty. The total transaction price for the sale of the stereo system and the extended warranty is $3,000. The standalone price of each is $2,300 and $900, respectively. The estimated cost of the assurance-warranty is $350. The accounting for warranty wil include a
Select one:
1. debit to Warranty Expense, $900.
2. debit to Warranty Liability, $350
3. credit to Warranty Liability, $900
4. credit to Unearned Warranty Revenue, $900
Business
1 answer:
meriva2 years ago
3 0

Answer:

Given:

The total transaction price for the sale of the stereo system and the extended warranty is $3,000.

The standalone price of each is $2,300 and $900, respectively.

The estimated cost of the assurance-warranty is $350.

Here, in this case the warranty expenses against sale of stereo is on basis of expected expenses .

Expected expenses in future is for certainty and sum collected against this expenses.  Therefore, $ 900 is gathered under assurance-warranty while no cost is incurred. Therefore, they will credit the unearned warranty revenue of  $ 900  

<u><em>Option (4) is correct.</em></u>

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Business analysis is difficult from operational databases. Which of the following is a reason, why? a. Every department has its
Viefleur [7K]

Answer: c. All of these

Explanation:

Business analysis is difficult from operational databases for quite a number of reasons which include but are not limited to:

i. Every department having its own method for recording data - there is a misalignment of data definitions across differnent departments which means that users might not be able to compare data effectively.

ii. Data standards not applying across departments - Different departments usually use different formats to record data again making comparison difficult.

iii. The data, if available, often being incorrect or incomplete - missing data across departments due to lack of set standards can again make comparisons difficult.

Therefore all of the options are correct.

3 0
2 years ago
How do you know if you are eligible to open and make contributions to a Roth IRA?
Whitepunk [10]

Answer:

The correct answer is letter "B":You have to earn below a certain amount to make contributions .

Explanation:

A Roth Individual Retirement Account (IRA) is the type of retirement account where contributions grow tax-free and allows individuals to withdraw funds under certain conditions. <em>People are eligible to open a Roth IRA as long as their income is less than $139,000 for singles and $206,000 for married couples- </em>information that applies for the year 2020.

7 0
2 years ago
25. Malcolm is working full-time and wants to make sure he's saving strategically for four specific goals: an emergency fund ($5
Degger [83]

A good strategy for saving or paying of debt is called the snow ball effect.

First, he would definitely need to save for his retirement before anything else.

Then you start tackling the smallest goal first. Once that one is paid off, you take that amount and apply it to the next goal and one from there.

8 0
2 years ago
Stock Y has a beta of 1.2 and an expected return of 12.1%. Stock Z had a beta of 0.8 and an expected return of 7.85%. The risk-f
levacccp [35]

Answer:

Since the expected return and required return are different for both Stock X and Z, we say that they are not correctly priced

Explanation:

<em>To determine whether or not the stocks are correctly priced ,</em>

<em>we have to compare the r</em><em>equired return</em><em> and the </em><em>expected return on each of them.</em>

Required return = Rf +β (Rm-Rf)

Note that Rm-Rf  is also known as market risk premium

                                  <em>Stock Y                         Stock Z</em>

<em>Required return   </em>       2.4% + 1.2(7.2%)            2.4% + 0.8(7.2%)

                                  = 11%                                   = 8.2%

<em>Expected return</em>            <em>12.1%                           7.85%</em>

Since the expected return and required return are different for both Stock X and Z, we say that they are not correctly priced

6 0
2 years ago
The following information is taken from the income statement of Olympic, Inc.: Depreciation Expense $ 90,000 Amortization Expens
Lina20 [59]

Answer:

The correct option is D,$402,000.

Explanation:

In determining the cash flow provided by operating activities,we need to adjust the net income for effects of non cash items reported.It is important  to note that the reverse of the earlier treatment of the items is what is required now.For instance depreciation and amortization  were deducted in  income statement,for cash flow purposes we need to add both to net income.

Net income                          $315,000

add depreciation                $90,000

amortization                         $15,000

loss on sale of equipment  $9,000

less gain on sale of building($27000)

Cash flow from operations  $402,000

The cash flow from operating activities as adjusted is $402,000.

6 0
2 years ago
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