Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 3 scotty pty ltd provides a 12-month warr

QUESTION 3 Scotty Pty Ltd provides a 12-month warranty on building work performed...

90.2K

Verified Solution

Question

Accounting

image

QUESTION 3 Scotty Pty Ltd provides a 12-month warranty on building work performed by the entity. On 1 January 2016, there was a credit balance of $85,300 in its warranty provision account. During the year ended 31 December 2016, Scotty Pty Ltd incurred $90,700 servicing warranty claims. All of the warranty costs were in the form of labour costs. During the year ended 31 December 2016, Scotty Pty Ltd's revenue from building contracts was $6,910,000 Warranty liabilities are estimated as 1% of building revenue for the previous 12 months. Required Prepare journal entries to record: (a) warranty claims during the period (b) adjustments to the warranty provision account at 31 December 2016. (Enter debit entries first followed by credit entries.Please include Dr and Cr as appropriate. Narrations are not required)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Medical Sciences
1.2K views

Place in order in which they act to impact respiration (ventilation) Signals sent to respiratory center Increased PCO2 Stimulation...

Medical Sciences
1.2K views

Your patient is a 39-year old high school guidance counselor who was diagnosed with Chrone’s disease...

Biology
1.2K views

Which of the following is correct order of the evolutionary history of man? (a) Peking man homo...

Medical Sciences
1.2K views

Case Presentation Harold, a fifty-eight year old grocery store manager, had recently been waking up in the...

Physics
1.2K views

-After observing all energy demonstrations listed below, write a preliminary working definition of energy. The energy demonstrations are: 1....

Geometry
1.2K views

Use the law of sines to find each measurement indicated Round your answers to the...

Geometry
1.2K views

Information is given about a polynomial f x whose coefficients are real numbers Find the...

Statistics
1.2K views

le 8 Correlation and Regression Homework K The weights in pounds of 6 vehicles and...

Calculus
1.2K views

Integrate: f(x) =?2/?16 x dx

Calculus
1.2K views

I need to sove this equation with f x being f a h G 10...

Algebra
1.2K views

Use trigonometric identities to write sin x in terms of cos x Choose the correct...

Accounting
1.2K views

Mr. and Mrs. Smith purchased 110 shares of stock for $43 per share on June...