36) Monthly sales are $520,000. Warranty costs are estimated at 6% of monthly sales, Warranties are honored with replacement products. No defective products are returned during the month. At the end of the month, the company should record a journal entry with a credit to: B) Sales for $31,200. A) Estimated Warranty Payable for $31,200. D) Inventory for $31,200. C) Warranty Expense for $31,200. 37) Kincaid Company's Retained Earnings balance on January 1 was $9000. During the current year, Kincaid eamed $3600 in revenues and incurred $4500 in expenses. Kincaid declared and paid $2300 in dividends, all in cash. After the closing entries are made, Kincaid's Retained Earnings balance on December 31 will be: D) $5800 C) $10,300. A) $9000 B) 58100. 38) Under accrual accounting the event that triggers revenue recognition for the sale of goods is the: B) delivery of goods to customer. A) date the customer orders the goods. D) date the customer pays for the goods. C) date a contract is signed. 39) On January 2, 2019, Kellogg Corporation acquired equipment for $500,000. The estimated life of the equipment is 5 years or 100,000 hours. The estimated residual value is $30,000. What is the book value of the asset on December 31, 2020, if Kellogg Corporation uses the straight-line method of depreciation? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar.) D) $470,000 C) $312,000 B) $500,000 A) 5406,000 40) Uneamed Service Revenue relating to services to be provided in one month, is reported on the balance sheet as: B) a component of stockholders' equity. A) a current liability. C) a revenue account. D) a long-term liability