Question
Big Box Appliances sold 500 dishwashers during June of 2021, at a total price of $400,000. The dishwashers are sold with a warranty guarantee that
Big Box Appliances sold 500 dishwashers during June of 2021, at a total price of $400,000. The dishwashers are sold with a warranty guarantee that the product is free from any defects. The cost of the dishwashers sold is $250,000. The term of the assurance warranty is one year, with an estimated cost of $10,000. In addition, Big Box Appliances sold extended warranties on 200 dishwashers for four years beyond the one-year period for $40,000. How much sales revenue should be recorded in June?
Question 2 options:
A. 440,000
B. 150,000
C.400,000
D. 390,000
Yummy Treats Ltd. uses the allowance method to record uncollectible accounts. At the end of December, 2021, the balance in accounts receivable is $80,000, and the balance in the allowance for doubtful accounts is $7,000. On December 31, management decided to write off a $3,000 uncollectible account from Toby Convenience store. After the write-off entry is completed, the net balance of accounts receivables reported on the balance sheet is:
A. 76,000
B. 77,000
C. 73,000
D. 80,000
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