Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. chapelle appliances sells dishwashers for $ 1,200

Chapelle Appliances sells dishwashers for $ 1,200 each, which includes a 2-year warranty that requires...

70.2K

Verified Solution

Question

Accounting

Chapelle Appliances sells dishwashers for $ 1,200 each, which includes a 2-year warranty that requires the company to perform periodic services and to replace defective parts. During 2020, Chapelle sold 600 dishwashers on account. Based on past experience, the company has estimated the total 2-year warranty costs at $ 40 for parts and $ 75 for labour. (Assume sales all occur at December 31,2020.)
In 2021, Chapelle Company incurred actual warranty costs relative to 2020 dishwasher sales of $ 4,000 for parts and $ 7,500 for labour.
Instructions
Use 2 methods and compare 1)the cash basis method ,2) expense warranty approach, what are the Warranty Expense balances for 2020 and 2021 and
prepare the entries?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

What is the role of the Sanskrit language in Hinduism? Does it matter that the much...

Psychology
Q

6 Nucleic acids Fill in the table below Describe the structure What sugar does it...

Biology
Q

will not experience a et force Two charged particles are placed at a distance 1...

Physics
Q

Q2 25 July 2021 Shift 1 mathongo mathongo mathongo mathongo mathongo Two different metal bodies...

Physics
Q

x u u OF m B 1 m 24 are based on the Two identical...

Physics
Q

A liquid when heated in a copper vessel and when heated in a silver vessel...

Physics
Q

Find any values of the variable that mak 8x x 2 49

Calculus
Q

The time to failure, t, in hours, of a machine is often exponentially distributed with...

Calculus
Q

5 Use the Variations on the Substitution Method to calculate the following integral 2 points...

Calculus
Q

Vernon Company, which expects to start operations on January 1, year 2, will sell digital...

Accounting
Q

Aldean Company wants to use absorption cost-plus pricing to set the selling price on a...

Accounting
Q

Camden Corporation, a calendar year accrual basis corporation, reported $5 million of net income after...

Accounting