During August, Boxer Company sells $363,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 4% of the selling price. The warranty liability account has a credit balance of $12,100 before adjustment. Customers returned merchandise for warranty repairs during the month that used $8,700 in parts for repairs. The entry to record the estimated warranty expense for the month is: Multiple Choice O Debit Estimated Warranty Liability $14,520; credit Warranty Expense $14,520. C) Debit Warranty Expense $2,420; credit Estimated Warranty Liability $2,420. Debit Warranty Expense $11,120 credit Estimated Warranty Liability $11,120. Debit Estimated Warranty Liability $14,520; credit Warranty Expense $14,520. Debit Warranty Expense $2,420; credit Estimated Warranty Liability $2,420 Debit Warranty Expense $11,120; credit Estimated Warranty Liability $11120. Debit Warranty Expense $14,520; credit Estimated Warranty Liability $14,520. Debit Estimated Warranty Liability $8,700; credit Warranty Expense $8,700. Employees earn vacation pay at the rate of one day per month. During the month of July, 15 employees qualify for one vacation day each. Their average daily wage is $90 per day. What is the amount of vacation benefit expense to be recorded for the month of July? Multiple Choice O $135.0 $13,500.0 o $150 Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of $9,088. The FICA tax for social security is 6.2% and the FICA tax rate for Medicare is 1.45%. The FUTA tax rate of 0.6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1,507.97. What is the total amount of taxes withheld from the Portia's earnings? (Round your intermediate calculations to two decimal places.) Multiple Choice O $2,203 21 o $2,637.21 C Den 26 in Naut A company has a selling price of $1700 each for its printers. Each printer has a 2 year warranty that covers replacement of defective parts. It is estimated that 2% of all printers sold will be returned under the warranty at an average cost of $148 each. During November, the company sold 28,000 printers, and 380 printers were serviced under the warranty at a total cost of $53,000. The balance in the Estimated Warranty Liability account at November 1 was $28,000. What is the company's warranty expense for the month of November? Multiple Choice 0 $56,240 $82,880 CERA An employee earned $45,400 during the year working for an employer when the maximum limit for Social Security was $118,500. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee's annual FICA taxes amount is: Multiple Choice o $6,946.20 $3,473.10
