Jonesy, Inc. sold 150 High Quality DVD players in the amount of$225 each during...

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Jonesy, Inc. sold 150 High Quality DVD players in the amount of$225 each during 2014 (for cash). The DVD's have a cost basis of$175 to the company. Jonesy offers a free 2 year warranty on allDVD players. Historically, they have experienced an averagewarranty cost of 3% of the sales price. Jonesy uses the perpetualinventory method. A. Record the sale of the 150 DVD players. B.Record the Warranty Expense Adjusting Entry at the end of 2014. C.During 2015, 10 of the DVD players are returned due to a severemalfunction and had to replaced with an entirely new unit out ofinventory. Record this entry. D.What is the total warranty expensethat would have been recorded for 2014? E. What is the totalwarranty liability at the end of 2014? F. What is the totalwarranty expense that would have been recorded for 2015? G. What isthe total warranty liability at the end of 2015? Comment on thecompany's estimated warranty percentage. Is it sufficient? Howwould you change it?

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A Sale of 150 dvd players Particulars Debit Credit Cash account 150225 33750 Sales revenue 33750 B Warranty expense adjusting entry Particulars Debit Credit Warranty expense ac See Answer

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In: AccountingJonesy, Inc. sold 150 High Quality DVD players in the amount of$225 each during 2014...Jonesy, Inc. sold 150 High Quality DVD players in the amount of$225 each during 2014 (for cash). The DVD's have a cost basis of$175 to the company. Jonesy offers a free 2 year warranty on allDVD players. Historically, they have experienced an averagewarranty cost of 3% of the sales price. Jonesy uses the perpetualinventory method. A. Record the sale of the 150 DVD players. B.Record the Warranty Expense Adjusting Entry at the end of 2014. C.During 2015, 10 of the DVD players are returned due to a severemalfunction and had to replaced with an entirely new unit out ofinventory. Record this entry. D.What is the total warranty expensethat would have been recorded for 2014? E. What is the totalwarranty liability at the end of 2014? F. What is the totalwarranty expense that would have been recorded for 2015? G. What isthe total warranty liability at the end of 2015? Comment on thecompany's estimated warranty percentage. Is it sufficient? Howwould you change it?