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Rouxdy Co. sold 2000 printers for $80 each. The sales tax rate is 8.5%. They estimate that 3.5% will be defective and the cost to
- Rouxdy Co. sold 2000 printers for $80 each. The sales tax rate is 8.5%. They estimate that 3.5% will be defective and the cost to repair them will be $50 each. During the year they honored 10 warranty contracts.
- Journalize the sale
- Estimate and record Warranty Expense
- Record the honoring of the warranty contracts
- Kameron works for Addidas Company. For the month ended March 31, Kameron earned $7,000. FICA taxes are 7.65%, state income taxes to be withheld totaled $350.00. Federal income taxes withheld totaled $525.00. His health insurance is $20.00, and he contributes 7% of his gross pay into his retirement account.
- Prepare the journal entry to record Kamerons earnings.
- b. Prepare the journal entry to record Addidas Co.s payment to Kameron
- On June 1, Addidas Co. sold 15,000 yearly subscriptions of its monthly magazine to customers for $22.00 each. Customers received their first subscription of the magazine July 1. Prepare the journal entries for June 1 and July 1.
- Journalize the issuance of magazines for August, September, and October (refer to item #3).
- Journalize the sale
- Estimate and record Warranty Expense
- Record the honoring of the warranty contracts
- Prepare the journal entry to record Kamerons earnings.
- b. Prepare the journal entry to record Addidas Co.s payment to Kameron
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