Exercise 9-10 Warranty expense and liability computations and entries LO P4 Hitzu Co. sold a copier costing $4,800 with a two-year parts warranty to a customer on August 16, 2017, for $6,000 cash. Hitzu uses the perpetual inventory system. On November 22, 2018, the copier requires on-site repairs that are completed the same day. The repairs cost $209 for materials taken from the repair parts inventory. These are the only repairs required in 2018 for this copier. Based on experience, Hitzu expects to incur warranty costs equal to 4% of dollar sales. It records warranty expense with an adjusting entry at the end of each year. How much warranty expense does the company report in 2017 for this copier?

the warranty expense does the company report for the year 2017 is  $240

Explanation:

The computation of the warranty expense does the company report for the year 2017 is shown below:

= Dollar sales × given percentage

= $6,000 × 4%

= $240

Hence, the warranty expense does the company report for the year 2017 is  $240

We simply applied the above formula so that the correct value could come

And, the same is to be considered

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer; avoid combining alcohol and