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Question 19 (1 point) Orwell Corp. produces products that provide magic trick materials and magician equipment to perform magical tricks. The company provides a 2-year
Question 19 (1 point) Orwell Corp. produces products that provide magic trick materials and magician equipment to perform magical tricks. The company provides a 2-year warranty with one of its products which was first sold in 2020. The company sold 5600,000 of products subject to the warranty. Orwell expects $100,000 of warranty costs over the next 2 years. In 2020, Orwell spent 554,800 servicing warranty claims. Determine which of the following debits or credits are part of the December 31, 2020 journal entry: Question 19 options: a) Debit Warranty Expense for 100.000 L b) Credit Warranty Liability for $54,800 c) Debit Warranty Expense for $45,200 d) Credit Inventory for $45,200 Question 20 (1 point) Kudos Co. gives each of its 50 employees 10 days of vacation a year if they are employed at the end of the year. You can assume they were all employed continuously through 2020 and 2021. The vacation accumulates and may be taken starting January 1 of the next year. The employees work 8 hours per day. In 2020, they made $22 per hour and in 2021 they made $25 per hour. During 2021, they took an average of 8 days of vacation each. What is the ending vacation liability for as of December 31, 2021. Question 20 options: a) $200.000 b) $120,000 c) S126,400 d) $88,000
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