Radio, Inc. offers a warranty that guarantees to replace any merchandise that is unsatisfactory during the 2 years following the sale. Radio, Inc. sold 35000 units for $21 each during Year6. Each unit has a cost of $14. Radio,Inc. actually replaced 1910 units during Year6. Radio,Inc. records $26950 of warranty expense as an adjusting entry at December 31, Year6. The balance in the warranty obligation account was $27440 on January 1, Year6. What is the balance in the warranty account on the adjusted balance sheet at the end of Year6? Palooza offers a warranty that guarantees to give a full refund on any merchandise that is unsatisfactory during the 18 months following the sale. Palooza expects that 4% of units sold will eventually be returned under warranty. Palooza sold 30000 units for $48 each during Year4. Each unit has a cost of $24. Palooza actually gave refunds for 1340 units during Year4. The balance in the warranty obligation account was $59040 on January 1, Year4. How much will Palooza record as warranty expense for Year4? What is the balance in the warranty obligation account on the adjusted balance sheet at the end of Year4?
Radio, Inc. offers a warranty that guarantees to replace any merchand
Radio, Inc. offers a warranty that guarantees to replace any merchandise that is unsatisfactory during the 2 years following the sale. Radio, Inc. sold 35000 units for $21 each during Year6. Each unit has a cost of $14. Radio,Inc. actually replaced 1910 units during Year6. Radio,Inc. records $26950 of warranty expense as an adjusting entry at December 31, Year6. The balance in the warranty obligation account was $27440 on January 1, Year6. What is the balance in the warranty account on the adjusted balance sheet at the end of Year6? Palooza offers a warranty that guarantees to give a full refund on any merchandise that is unsatisfactory during the 18 months following the sale. Palooza expects that 4% of units sold will eventually be returned under warranty. Palooza sold 30000 units for $48 each during Year4. Each unit has a cost of $24. Palooza actually gave refunds for 1340 units during Year4. The balance in the warranty obligation account was $59040 on January 1, Year4. How much will Palooza record as warranty expense for Year4? What is the balance in the warranty obligation account on the adjusted balance sheet at the end of Year4?
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