90.2K

Verified Solution

Link Copied!

Exercise 9-18 Accounting for current liabilities under IFRS LO P4 Volvo Group reports the following formation for product warranty costs as of December 31, 2014, wong with provisions and c ons of warranty Rates for the year ended December 31, 2014 SEK in mlns) Provision for product warranty Warranty pro maled consideration of historical stats the warranty period, the average met beween fouts occurring and to the company and articipated changes in qua indexes Estated cows for product warranties are recoged as cost of sales when the products are sold Differences between alway s and the sale s generally a t the recognized expense and provisions in the periods Hends to w in a decrease the Volvo Group's warranty costs are recognized to the extent these are condered to be cerin As of December 31, 2014 2013) warranty cost provisions amount to 10 3579 ) 2013 how Additional pronto product www 1. & 2. Prepare shivolved in to records stated your answers in SEK) os volve m ents taken out of inventory with 1. & 2. Prepare Volvo's journal entry to record its estimated warranty labies provisions) and costs utilizations related to its warranty program for 2014. Assume those costs involve replacements taken out of inventory with no cash involved (Enter your answers in millions of SEK.) View transaction list Journal entry worksheet Record Volvo's estimated warranty liabilities (provisions) for 2014 Transaction Debit Credit TITIL TIILE III Vew general joumal 3. How much warranty expense does Volvo report for 2014? (Enter your Warranty expense SEK 1. & 2. Prepare Volvo's journal entry to record its estimated warranty liabilities (provisions) and costs (utilizations) related t cash involved. (Enter your answers in millions of SEK.) View transaction list Journal entry worksheet Record Volvo's costs (utilizations) related to its warranty program for 2014 Assume those costs involve replacements taken out of Inventory, with no cash involved Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal 2014 Inter your answer in millions of SEK.)

Answer & Explanation Solved by verified expert

See Answer