1. Calculate the warranty return rate for 2020 and 2019.
2.Describe information necessary to determine the appropriate warranty percentage.
3.Is Eagle View's methodology reasonable?What other considerations should be included in the methodology, if any?
4.What would you consider a reasonable warranty liability accrual?Explain you decision.
5.What, if any, adjustment would you propose?Record here.
AutoSave . Off) - ACC 317 Eagle View Field Work Workbook.xIsx - Excel Search Alex S X File Home Insert Page Layout Formulas Data Review View Help Share Comments & Cut Gill Sans MT 14 ~ A" A " ab Wrap Text General Normal Bad Good Neutral AutoSum O [B) Copy Fill Paste BIULA E Format Painter E Merge & Center Conditional Format as Calculation Check Cell Explanatory T... Input nsert Delete Format Sort & Find & Ideas Sensitivity Formatting Table v Clear Filter ~ Select Clipboard Font Alignment Number Styles Cells Editing Ideas Sensitivity A1 X V Eagle View Company A B C D E G H K L M N O P Q R S T U V W Eagle View Company J -- 2 2 Analysis of Product Warranty Expense w For the Years Ended December 31, 2020 and December 31, 2019 UT Month Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 6 Sales for Month 532,000 316,000 359,000 479,000 486,000 414,000 7 Returns During Month Current Month 646 672 468 670 842 716 I Month Old Sales 1,896 1,938 732 702 1,340 1,472 2 Month Old Sales 1,314 1,770 1,722 794 820 1,532 3 Month Old Sales 1,834 1,690 2, 148 1,830 1,160 1,054 12 4 Month Old Sales 1,188 1,250 1.596 2.402 2,046 1.098 13 5 Month Old Sales 1,350 1,398 1,000 1.314 2,020 1.616 14 6 Month Old Sales 398 782 280 1,166 1.408 1,390 15 Total Returns 8,626 9.500 7,946 8,878 9.636 8,878 16 17 Month Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 18 Sales for Month 371,000 460,000 442,000 533,000 586,000 800,000 19 Returns During Month 20 Current Month 1,198 502 554 440 846 1,008 21 Month Old Sales 884 674 1,504 1,476 1,538 1,570 22 2 Month Old Sales 1,368 1,032 750 2,406 1,660 1,868 23 3 Month Old Sales 2,108 1,894 1,328 1,498 1,704 1,752 24 4 Month Old Sales 584 1,436 1,788 1,254 1,648 1,204 25 5 Month Old Sales 1,038 936 1,150 1,998 1,106 1,048 26 6 Month Old Sales 970 610 1,288 1,340 1,158 1.032 27 Total Returns 8,150 7,084 8,362 10,412 9,660 9,482 Activate Windows 28 Go to Settings to activate Windows. Unrecorded Liabilities Warranty Expense Warranty Liability Bonus Calculations + Ready + 100%X AutoSave . Off) - ACC 317 Eagle View Field Work Workbook.xIsx - Excel Search Alex S Share Comments File Home Insert Page Layout Formulas Data Review View Help Gill Sans MT ab Wrap Text General Bad Good Neutral AutoSum & Cut 14 ~ A" A Normal O [B) Copy Fill Conditional Format as Calculation Check Cell Explanatory T... Input nsert Delete Format Sort & Find & Ideas Sensitivity Paste BIULA E E E Merge & Center $ ~ % 9 08 28 Clear Format Painter Formatting Table v Filter ~ Select Cells Ideas Sensitivity Clipboard Font Alignment Number Styles Editing A1 X V Eagle View Company A B C D E F G H K L M N O P Q R S T U V W 28 29 30 Month Jan 2019 Feb 2019 Mar 2019 Apr 2019 May 2019 Jun 2019 31 Sales for Month 486,000 303,500 275,500 443,500 470,000 325,500 32 Returns During Month 33 Current Month 193 137 177 222 147 61 34 I Month Old Sales 445 533 388 329 369 514 35 2 Month Old Sales 599 693 837 319 481 480 36 3 Month Old Sales 555 423 1,287 875 662 658 37 4 Month Old Sales 570 658 986 1,188 343 320 38 5 Month Old Sales 328 289 763 1,021 792 571 39 6 Month Old Sales 323 285 253 485 211 445 40 Total Returns 3,013 3,018 4.691 4,439 3,005 3.049 41 42 Month Jul 2019 Aug 2019 Sep 2019 Oct 2019 Nov 2019 Dec 2019 43 Sales for Month 336,000 438,000 407,000 480,000 51 1,000 696,000 44 Returns During Month 45 Current Month 256 284 210 292 469 505 46 I Month Old Sales 276 313 497 559 583 563 47 2 Month Old Sales 625 429 569 462 629 666 48 3 Month Old Sales 591 441 797 541 639 664 49 4 Month Old Sales 456 702 1,029 735 512 604 50 5 Month Old Sales 205 228 812 698 490 456 51 6 Month Old Sales 457 251 202 517 220 272 52 Total Returns 2,866 2,648 4, 1 16 3,804 3,542 3,730 53 OneDrive 54 Analytical Procedures: 55 ActiScreenshot saveds The screenshot was added to your 56 Unrecorded Liabilities Warranty Liability + 4 OneDrive. Warranty Expense Bonus Calculations ReadyACC 317 Eagle View Field Work Workbook.xIsx - Excel Alex S X AutoSave . Off) _ Search Comments File Home Insert Page Layout Formulas Data Review View Help Share Bad Good AutoSum & Cut Gill Sans MT 14 ~ A" A ab Wrap Text General Normal Neutral O Fill [B Copy Input nsert Delete Format Sort & Find & Ideas Sensitivity Paste Format Painter BIULA E Merge & Center $ ~ % 9 08 28 Conditional Format as Calculation Check Cell Explanatory T... Formatting Table v Clear Filter ~ Select Alignment Styles Cells Ideas Sensitivity Clipboard Font Number Editing A1 X v fx Eagle View Company V W D G H K L M N O P Q R S T U 7 Prepared by: Calculate the warranty return rate for 2020 and 2019. 9 2020 2019 10 2) 11 Describe information necessary to determine the appropriate warranty percentage. 12 13 14 15 3 ) Is Eagle View's methodology reasonable? What other considerations should be included in the methodology, if any? 16 17 18 4) 19 What would you consider a reasonable warranty liability accrual? Explain you decision. 20 21 22 5) What, if any, adjustment would you propose? Record here. 23 24 Account Debit Credit Activate Windows 25 Go to Settings to activate Windows. Unrecorded Liabilities Warranty Expense Warranty Liability Bonus Calculations + + 100% Ready
