5 Engel Mig sells scooters with a oneyear warranty In the cu

5. Engel Mig. sells scooters with a one-year warranty, In the current year s consisted of 4,500 units. It is estimated that warranty repairs will average Sio per unit-sold, and30%ofthe repairs willbe made in the- current year and 70% in the next year In the current year\'s income statement, Hall should show warranty expense of a. $45,000 b. $13,500 c. $31,500 ?.$0 6. On May 1 Simpson Sales Inc signed a 60-day 8% note payable, with a face value of $9,000. What amount of interest expense is accrued at May 31, the company\'s fiscal year end, on the note? Use a 360 day year for your computation. a. $60 b. $72 c. $120 d. $720 e. $180 7. On May 1 Papscoe Inc. signed a 90-day 6% note payable with a face value of S20 000. What is the adjusting entry for the accrued interest at June 30, the company\'s fiscal year end, on the note? Use a 360 day year for your computation. a. Debit interest expense, $1,200; credit interest payable, $1,200. b. Debit interest payable, $1,200; credit interest expense, $1,200. c. Debit interest expense, $200; credit interest payable, $200. d. Debit interest expense, $800; credit interest payable, $800. e. Debit interest payable, $200; credit interest expense, $200. 180-da note pa $10,000. What is the maturity value of the note in October when due? a. $10,350 b. $10,000 c. $9,300 d. $9,100 d. $10,700

Solution

5.) a)45000 is shown as warranty expense in current year as provision is made for $45000

6) c)is the answer

7) c)is the enswer

8) a)10350 is the amturity value of the note when due