Question

4) Arbor Industries sold their old office furniture for cash, to make way for new replacement furniture. Their journal entry to record the sale will include:

A) A debit to accumulated depreciation and a credit to cash

B) A debit to accumulated depreciation and a credit to furniture

C) A debit to depreciation expense and a credit to cash

D) A debit to depreciation expense and a credit to furniture

5) A company includes warranties on all of its products sold. When is warranty expense recorded?

A) When the product under warranty is repaired

B) When the product under warranty is manufactured

C) When the customer pays for the product under warranty

D)When the product under warranty is sold

6) Harbor Manufacturing includes warranties on all of its products sold. Harbor’s warranty liability was $10,000 on January 1. During the year, Harbor made repairs under warranty of $12,000 had sales revenue of $750,000. If Harbor estimates that warranty costs are 2% of sales, what is the balance in the warranty liability account at December 31?

A) $10,000

B) $12,000

C) $13,000

D)$15,000

Answer 1

The answer has been presenetd in the supporting sheet. For detailed answer refer to the supporting sheet.