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Keaton Inc. sells stability balls for $30/each. Each ball comes with a two year warranty. Keaton accrues warranty expense at a rate of 1.5% of
Keaton Inc. sells stability balls for $30/each. Each ball comes with a two year warranty. Keaton accrues warranty expense at a rate of 1.5% of sales dollars. Their cost to replace damaged and defective stability balls under warranty is $7 per ball. In June 2023, Keaton sold 1,000 stability balls. What is the dollar value of Keaton's June sales? How much should cooper record was Warranty Expense for June? Prepare the journal entry to record June's Warranty Expense. DR: CR: In the month of August, 2023, 25 balls were returned under the warranty. Prepare the journal entry to record the replacement of the returned balls. DR: CR: Cooper Inc pays its employees an annual bonus equal to 3% of the prior year's Net Income. Cooper estimates Net Income for 2025 will be $1,000,000. What is Cooper's estimated Bonus Expense for 2025? Prepare the journal entry to record estimated Bonus Expense for the year. DR: CR: Cooper's actual Net Income for 2025 was $1,200,000. How much will Cooper actually pay in bonuses related to 2025? Prepare the journal entry to record the payment of the bonus. DR: CR: Prepare the journal entry to true up the Bonus Payable account. DR: CR
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