Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following screenshots are my questions. thank you Bombardier Inc. specializes in manufacturing transportation products (aircraft, railway equipment, snowmobiles, and watercraft}. The company offers warranties

The following screenshots are my questions. thank you

image text in transcribedimage text in transcribedimage text in transcribed
Bombardier Inc. specializes in manufacturing transportation products (aircraft, railway equipment, snowmobiles, and watercraft}. The company offers warranties on all of its products. Note 2 to Bombardier's nancial statements for scal year 215 stated the following: Product warranties typically range from one to ve years, except for aircraft and hogie structural warranties that extend up to 2D years. Selected information from Bombardier's annual reports follows [amounts in millions of US. dollars}: 211115 2914 2513 Revenues 16,353 13,44? 1?,992 Provision for product warranties at year-end 936 1,093 1,140 During scal year 2015. Bombardier paid ti million to customers in exchange for returned products under the warranty. Required: 1. Compute the amount of warranty ean-ense for scal year EH15. {Enter your answer in millions of dollars.) _:I 2. Prepare journal entries to record both the warranty expense for the year and the payments made under the warranty. {If no entry is required for a transactiontevent. select "No journal entry required" in the rst account field. Enter your answers in millions of dollars.) Journal entryr worksheet Record payments to customers In exchange for returned products. 2. Prepare journal entries to record both the warranty expense for the year and the payments made under the warranty. {If no entry is required for a transactionievent. select "No journal entry required" in the rst account field. Enter your answers in millions of dollars.) View transaction list Journal entry worksheet Record payments to customers in exchange For returned products. Note: Enter debits before credits. 1I'iew general journal 3-a. Compute the ratio of the warranty liability to revenues for the three years. (Round percentage answers to 2 decimal places [i.e., 11.1243 should be entered as 12.43}.] II---E 3-H. Cmpute the ratio at the warranty liability ta revenues fer the three years. [Reund percentage answers to 2 decimal places ii.e., 11.1243 sheuld be entered as 12.43:\" -E-E-E 3-b. Has the ratie increased cr decreased during the three-year aeric-cl'i|I 4. Based en the limited int'crmatien available about the warranty expense and payments in 2015. shculd Etemberdier increase the balance at the 1.Ilrerranty liability in future years":|I lfillies C) MD

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Computer Accounting

Authors: Donna Kay

14th Edition

007762453X, 9780077624538

More Books

Students also viewed these Accounting questions

Question

What are the challenges associated with tunneling in urban areas?

Answered: 1 week ago

Question

What are the main differences between rigid and flexible pavements?

Answered: 1 week ago

Question

What is the purpose of a retaining wall, and how is it designed?

Answered: 1 week ago

Question

How do you determine the load-bearing capacity of a soil?

Answered: 1 week ago

Question

what is Edward Lemieux effect / Anomeric effect ?

Answered: 1 week ago

Question

4. What is the goal of the others in the network?

Answered: 1 week ago

Question

2. What we can learn from the past

Answered: 1 week ago