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Part A: MoTown Appliances sells built-in ranges for $1,400 each. The price includes a one-year warranty. During 2021, the company sells 1,650 ranges. On the
Part A: MoTown Appliances sells built-in ranges for $1,400 each. The price includes a one-year warranty. During 2021, the company sells 1,650 ranges. On the basis of past experience, the approximately 4% of units sold will require warranty replacement at an average cost of $ 450 per unit. The actual warranty costs paid by MoTown during 2021 were $ 25,000. Part B: GoTowm charges 5% GST and 7% PST on all sales. On April 27, the company collected $125,500 cash in sales, plus it also collected the necessary sales taxes in cash. Part C: PoTown has the below data for you to record salaries expense and employer benefits expense. Assume company accrues 4% of vacation pay. Gross Pay CPP Employee El Employee Income tax United Best Way $ 8,319.75 $ 371.85 $138.09 $1,059.15 $ 91.50 Part A: Prepare journal entry to record the estimated warranty expense and the warranty payments during 2021. Part A: Prepare journal entry to record the estimated warranty expense and the warranty payments during 2021. Warranty Expense Warranty Liability 29,700 29,700 + Part B: Prepare a combined journal entry of collecting cash for sales and taxes. You must go in order of the question when it comes to selecting taxes " " 4 Part C: Record the payroll and the accrual of employee benefits expense (2 separate journal entries are required). Record Salaries Expense entry (use relevant accounts in the order provided in the question) o 0 Part C: Record the payroll and the accrual of employee benefits expense (2 separate journal entries are required). Record Salaries Expense entry (use relevant accounts in the order provided in the question) " 4 4 + O " Record Employer Benefits Expense entry (use relevant accounts in the order provided in the question) " 4 4 Please put an answer in each box
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