Question Help Go-Kartssels moto nally purchased by More Indo ption facilities, but are also the month of December Click the icon to view December 1 the requirements 5 uirement 1. Prepare the ations that do not require c1: Richie sold 17 go- ons are not required. For is blank) nel record the core 20 Ritchie sold 17 go-karts on account. The selling price of each go-kart was $1,300; the cost of goods sold for each was $450. Ritchie received notice of a class-action lawsuit being filed against it. The lawsuit claims that Richie's go-karts have engine defects that appear after the warranty period expires. The plaintiffs want Ritchie to replace the defective engines and pay damages for the owners' loss of use. The cost of replacing the engines would be approximately $415.000 (not including any damages) Richie's attomey believes that it is reasonably possible that Ritchie will lose the case, but the attorney cannot provide a dollar estimate of the potential loss amount Richie performed repairs due to product warranty complaints for two go-karts sold earlier in the year. Ritchie's cost of the repairs, paid in cash, was $950. An individual claims that he suffered emotional distress from a high-speed ride on a Ritchie Go Kart and is seeking $490,000 in damages. Richie's attorney beleves the case is frivolous because it does not have any legal merit Another customer is suing Richie for $220,000 because a defect in the customer's Ritchie Go-Kart engine started a fire and destroyed the customer's garage. Richie's attomey believes the customer will probably win the case and Trive $220.000 (Use the following account names: Loss from Lawsuit and Accrued Liability from Lowaut.) Ritchie estimates that the warranty expense is 3% of gross sales Rechie's gross sales for the period totaled $190.000 Date Det 1 22 27 Now record the crewd 31 Date Dec 1 Choose from my store Print Done This course (USNIA Fancial Accounting - Summer 2020-as Positas College is based on Thomas The Financial Accounting 12 MacBook Air so RS 2 DI Te :$ 3 A $ 4 2 3 96 5 6 C 9 O 7 8 W E R T Y U - 0 S D F G H J L V ? N B M * mand command option Requirement 1. Prepare the journal entries to record the transactions shown. Omit explanations. (Record debits first, then credits. Explanations are not required. For situations that do not require an entry, make sure to select "No entry required in the first coll in the "Accounts column and leave all other cells blank) Dec 1: Richie sold 17 go-karts on account. The selling price of each go-kart was $1,300, the cost of goods sold for each was $450. Do not record the cost related to the sale. We will do this in the next joumal entry Journal Entry Accounts Date Debit Credit ce Dec 11 Mod lon Tog Now record the cost to the sale above Journal Entry Accounts Debit Credit Date Det 1 1 Choose from any stof enter any number in the input fields and then continue to the need question This cour BUSNIA A Summer 2020-La Pos Colibased on these and Accounting MacBook Air 2 9: 2.88 PF 38 ! 36 5 2 3 4 & 7 6 8 9 0 Q W E R T Y U - 0 P A S D F G H J L ..... > command command option Click the icon to view the transactions) Read the requirements Dec 5: Richie received notice of a class-action lawsuit being filed against R. The lawsuit claims that Ritchie's go-karts have engine defects that appear after the wattanty period expires. The plaintiffs want Richie to replace the defective engines and pay damages for the owners loss of use. The cost of replacing the engines would be approximately $415.000 (not including any damages). Richie's attomey believes that it is reasonably possible that Ritchie will lose the case, but the attomey can provide a dolor estimate of the potential loss amount Journal Entry Date Debit Credit Accounts Doc 5 brary udy Mod Dec 20: Ritchie performed repairs due to product warranty complaints for two gokarts sold earlier in the year. Ritchie's cost of the repairs, paid in cash, wies 5950 cation Too Journal Entry Account Debit Credit Date 20 D Choose from any list or any number in the input fields and then continue to the next question This BUSNIA Francia conting-Summer 2020 Las Posts Colege is based on Thomas Financial Accounting 12 MacBook Air So E: M 9 OP w ) ! 1 2 3 $ 4 X 5 6 & 7 . 8 9 0 . . { Q E R T Y C 1 0 P A S D F G H J K X N V B N M command command option Richie Go Kartssells motorized go-karts. Ritchie Go-Karts are motorized and are typically purchased by amusement parks and other recreation facilities, but are also occasionally purchased by individuals for their own personal use. The company uses a perpetual inventory system. Selected transactions in the month of December follow Click the icon to view the transactions.) Read the rarements Dec 20: Ritchie perfomed repairs due to product warranty complaints for two go-karts sold earlier in the year. Ritchie's cost of the repairs, paid in cash, was $950 Journal Entry Accounts Date Debit Credit 20 edia Urary mic Study Mo Dec 22 An individual cains that he wifered emotional distress from a high-speed ride on the Go Kart and is seeking $490,000 in damages Rich's attomey belves the case is to because it does not have any legalment Journal Entry Accounts Debit Credit Dec 22 munication to Date Choose from any list or enter any number in the inputs and then continue to the extention This countr-Summer 20 based on the MacBook Air so 2 18 . 3 $ 4 ) 1 A 6 . 2 & 7 5 8 C 9 + Q W E R T Y C - P o A S D F G H J K L N C X V ? B Z M 1 wion command command option Click the loon to view the transactions) Read the recents Dec 27: Another customer is suing Richie for $220,000 because a defect in the customer's Ritchie Go-Kart engine started a fire and destroyed the customer's garage Richie's attomey believes the customer will probably win the case and receive $220,000. (Use the following account names: Loss from Lawsuit and Accrued Liability from Lawsuit) Journal Entry Accounts Debit Credit Text Date Dec 27 Sa Ubrary Study Mod munication Toc Dec 31: Roche estimates that the warranty expense is 3% of gross sales, Ritchie's gross sales for the period totaled $750,000 Journal Entry Date Accounts Deb Crede Dec 31 Choose from any or renumber in the input fields and the continue to the next question This course USA and Accounting Summer 2000. Las Postales hacedon Thomas Ternal Acroute 12e MacBook Air * 288 1 ! 2 3 $ 4 5 6 . 8 7 9 . Q W E R T Y U o P I A S D F G J K L > N X V B N M I 1 Fon * command command option Library ources Requirement 2. Describe how each of the contingent liabilities in the selected December transactions would be treated in Ritchie's financial statements for 2019 Select four answers.) A. Dec 27 transaction will be reported as a liability on the balance sheet and an expense on the income statement Transaction will not be footnoted since it is recorded on the fnancial statements. OB. Dec 6 transaction will be reported as a liability on the balance sheet and an expense on the income statement. Transaction will also be footnoted, C. Dec 22 transaction will be footnoted as a contingent liability Study Mod DD. Dec 31 transaction will be reported as a lability on the balance sheet and an expense on the income statement Transaction will also be footnoted. DE Dec 5 transaction will be footnoted as a contingent ability F. Dec 27 wansaction will be reported as alability on the balance sheet and a loss on the income statement Transaction will be footnoted. DG. Dec 31 transaction will be reported as a lability on the balance sheet and an expertise on the income statement Transaction will not be footnoted since it is recorded on the financial statements. O Dec 22 sation will not be footnoted because is to be a los ication Tog Choose from any water enter any number in the root folds and then continue to the next question This course USA and Accounting Summer 2000-as portas con based on Thoma/Terracial Art 12 MacBook Air 20 888 180 1 ! 7 2 3 $ 4 14 5 6 7 C 9 8 ) 0 Q W E R T Y C I o P S D F G I J A L N C > 2 B Z M 1 H on command command option