Joseph Corporation sold 11,000 units of a new product for $7…

Joseph Corporation sold 11,000 units of a new product for $70/unit during 2020. The sales price included a 3-year warranty to cover any defects on the product.  Management at Joseph Corporation estimates total warranty expenses to be 7% of sales dollars.  Assuming actual warranty expenditures related to this product were $19,000 in 2020, what amount of warranty expense will Joseph Corporation record on their 2020 income statement?

As of December 31, 2017, Rodger’s company has a balance in t…

As of December 31, 2017, Rodger’s company has a balance in their accounts receivable of $1,300,000.  The beginning balance in their allowance for doubtful accounts (AFDA) is $3,000 (debit) and they estimate that they need an ending allowance balance equal to 5% of the gross receivables balance.  The journal entry to adjust the allowance for bad debt expense will include:

J&L reported net income of $250,000 for the year ended Decem…

J&L reported net income of $250,000 for the year ended December 31, 2020.  The following information was also available: Current assets increased by $30,000 Current liabilities decreased by $25,000 J&L declared, and paid, $50,000 of dividends $50,000 of long-term property, plant and equipment was purchased with cash Depreciation expense, included in net income, was $15,000 J&L sold a piece of equipment with an original cost of $50,000 and accumulated depreciation of $33,000 for $25,000 in cash. J&L issued long-term bonds payable for $500,000 at par. Calculate J&L’s cash flows from operations.