Sawyer Appliances sells heaters with an embedded 1-year warranty as well as an optional 2-year extended...

Sawyer Appliances sells heaters with an embedded 1-year warranty as well as an optional 2-year extended warranty. In 2017, Sawyer sold 50 heaters with the extended warranty, which costs $10 for each heater. In 2019, Sawyer spent $75 fixing heaters under the extended warranty. Sawyer recognized the revenue on the extended warranties using the straight-line method. a. Record the sale of the extended warranties in 2017. b. Record the repairs performed under the extended warranties in 2019. c. Record the revenue to be recognized on the extended warranties in 2019.

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

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 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...

The Eyes Have It sells custom eyewear during Year One that come with an embedded warranty....

The Eyes Have It sells custom eyewear during Year One that come with an embedded warranty. If the glasses break during Year Two, they will be fixed for free. Customers may also purchase an extended warranty that covers Year Three. During Year One, the company sold 55,000 pairs of eyeglasses for $1,000,000. Customers who purchased 40,000 of those pairs also purchased the Year Three extended warranty. The extended warranty brought in additional cash of $200,000. The company expects that 6...

General Electric (GE) appliances come with a traditional warranty, but the company also offers extended coverage...

General Electric (GE) appliances come with a traditional warranty, but the company also offers extended coverage with a Service Protection Advantage plan from Assurant, GE's authorized provider of extended warranties. The plan covers parts and labor for appliance repairs for an extended period. According to data compiled by Assurant, thirty percent of consumers who purchase a new GE appliance also buy the Service Protection Advantage plan. Assume that a random sample of fourteen consumers who purchased a new GE appliance...

MoTown Appliances sells built-in ranges for $ 1,400 each. The price includes a two-year warranty. During...

MoTown Appliances sells built-in ranges for $ 1,400 each. The price includes a two-year warranty. During 2019, the company sells 1,650 ranges. On the basis of past experience, approximately 4% of units sold will require warranty replacement at an average cost of $ 450 per unit. The actual warranty costs paid by MoTown during 2019 for replacement was $ 25,000. Instructions: a) Prepare adjusting journal entries to record the estimated warranty expense and the warranty payments during 2019 at December...

1) Farmers Tool Company sells lawn mowers with a 2-year service-type warranty. The warranty costs $99....

1) Farmers Tool Company sells lawn mowers with a 2-year service-type warranty. The warranty costs $99. On November 1, 2017, Farmers Tool Company sold 20 lawnmowers at $2,000 each. Ten warranties were sold. On July 14, 2018, $500 is spent on warranty costs. Prepare the journal entries related to the sale on November 1st and for the warranty costs incurred on July 14th. SHOW YOUR CALCULATIONS!!! Do not forget journal entry descriptions. 2) Diamond Corporation declared a cash dividend of...

Question #2: (PART 1) Johnson Corp. sells two products with a 1-year warranty. It estimates that...

Question #2: (PART 1) Johnson Corp. sells two products with a 1-year warranty. It estimates that the first product’s warranty cost will be 1% of sales. It is unable to estimate the cost of the second product’s warranty cost but it assumes that it will exist. Present your answer as to how the warranty costs should be recorded for each of the two products for the current year 2018. What is your rationale. (PART 2) Johnson Corp is also involved...

Landcaster Inc. sells its products with a 2-year service-type warranty. On January 1, Year 1, Landcaster...

Landcaster Inc. sells its products with a 2-year service-type warranty. On January 1, Year 1, Landcaster sells 60 machines for $2,500 each, on account. Landcaster determines that the machines normally sell for $2,275 each and the service-type warranty could be purchased for $225 per machine. In Year 1, Landcaster pays $5,000 for warranty costs. Required: Landcaster Inc. sells its products with a 2-year service-type warranty. On January 1, Year 1, Landcaster sells 60 machines for $2,500 each, on account. Landcaster...

4) An extended warranty for 3 years is sold for $1,155.00 on January 1, 2009. $200...

4) An extended warranty for 3 years is sold for $1,155.00 on January 1, 2009. $200 is spent by the company to honor the warranty on March 7, 2009. Revenue is recognized for unused portion of the warranty on December 31, 2009. No money is spent in 2010 on warranties. Revenue is recognized for the unused portion of the warranty on December 31, 2010. (check figure: 12/31/2009 entry to unearned extended warranty = $185.00 debit) Create the general journal entries...

Amazon sells copiers that come with a 2-year warranty contract that requires them to fix any...

Amazon sells copiers that come with a 2-year warranty contract that requires them to fix any defects during the warranty period. During 2018, Amazon sells 600 copiers for $4,000 each. During 2018, Amazon spent $30,000 servicing these warranties. During 2019, Amazon spent $100,000 servicing these warranties. a) Record any necessary journal entries related to the sale of the copiers and the warranties for both 2018 and 2019. Amazon estimates that the total cost of the 2-year warranties will be $150,000....

McKay Company sells merchandise with a one-year warranty. In Year 1, sales consisted of 1,200 units....

McKay Company sells merchandise with a one-year warranty. In Year 1, sales consisted of 1,200 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in Year 1 and 70% in Year 2. In the Year 1 income statement, McKay should show warranty expense of

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