During July, SoundWaves sold 200 radios for $50 each. Each radio had cost SoundWaves $30 to purchase and carried a two-year warranty. If 5 percent typically need to be replaced over the warranty period and one actually is replaced during July, for what amount in July should Soundwaves debit Product Warranty Expense?
2007-03-13 12:31:38 · 4 answers · asked by shaubloom 3 in Business & Finance ➔ Other - Business & Finance
10 radios (5% of the 200 sold) at 30 (cost) = $300.00.
What's the credit?
2007-03-13 12:35:39 · answer #1 · answered by cjones1303 4 · 0⤊ 0⤋
$300 for accounting purposes. For tax purposes $30
2007-03-13 13:05:23 · answer #2 · answered by dondatu 3 · 0⤊ 0⤋
30.00 ( cost ) for the single unit replaced in July
2007-03-13 12:41:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I'm guesssing..5% of their purchase price ($1.50) per unit. or total 300.00
2007-03-13 12:36:43 · answer #4 · answered by ? 5 · 0⤊ 0⤋