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Part A . ( 4 Marks ) . Ace Appliances Inc. offers a 1 2 - month warranty on all its appliances. Ace Appliances estimates
Part A Marks Ace Appliances Inc. offers a month warranty on all its appliances. Ace Appliances estimates that one appliance out of each sold will require warranty service and that the average cost per warranty claim is $ Ace sold appliances during The estimated warranty liability at the beginning of the year was $ Claims of $ were actually paid during the year to honour warranties. Ace Appliances has a December yearend.
Required:
Calculate the estimated warranty expense for Ace Appliances for marksNeed not show calculations
Calculate the balance of the Estimated Warranty Liability account at December marksNeed not show calculations
Part BMarks For the month of November Ace Appliances recorded
$ in sales, which were all on account. The company is required to charge PST and GST on all sales.
Required:
Prepare the journal entry to record the companys sales activity for November
Part C marksOn September Ace Appliances above borrowed $ from the Peoples National Bank on a ninemonth, note. Ace has a December yearend.
Required:
Give the journal entry on June when the note is paid by Ace Appliances. Need not show calculations
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