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Question 109

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Use the following information to answer questions
Royal Cookware offers its customers a lifetime guarantee that its cookware will not break. The company estimates that 3% of the sets sold will become defective. In 2009, Royal sold 1,000,000 sets of cookware. Royal did not have any cookware returned for defects in that year. However, in 2010, 2,800 sets were returned to Royal for defects. Royal's average estimated cost to repair a set of cookware is $40.
-Which of the following journal entries would be made in 2010 to record Royal's repair costs of $85,000 for parts and $24,000 for labor?


A) Use the following information to answer questions Royal Cookware offers its customers a lifetime guarantee that its cookware will not break. The company estimates that 3% of the sets sold will become defective. In 2009, Royal sold 1,000,000 sets of cookware. Royal did not have any cookware returned for defects in that year. However, in 2010, 2,800 sets were returned to Royal for defects. Royal's average estimated cost to repair a set of cookware is $40. -Which of the following journal entries would be made in 2010 to record Royal's repair costs of $85,000 for parts and $24,000 for labor? A) B) C) D) E)
B) Use the following information to answer questions Royal Cookware offers its customers a lifetime guarantee that its cookware will not break. The company estimates that 3% of the sets sold will become defective. In 2009, Royal sold 1,000,000 sets of cookware. Royal did not have any cookware returned for defects in that year. However, in 2010, 2,800 sets were returned to Royal for defects. Royal's average estimated cost to repair a set of cookware is $40. -Which of the following journal entries would be made in 2010 to record Royal's repair costs of $85,000 for parts and $24,000 for labor? A) B) C) D) E)
C) Use the following information to answer questions Royal Cookware offers its customers a lifetime guarantee that its cookware will not break. The company estimates that 3% of the sets sold will become defective. In 2009, Royal sold 1,000,000 sets of cookware. Royal did not have any cookware returned for defects in that year. However, in 2010, 2,800 sets were returned to Royal for defects. Royal's average estimated cost to repair a set of cookware is $40. -Which of the following journal entries would be made in 2010 to record Royal's repair costs of $85,000 for parts and $24,000 for labor? A) B) C) D) E)
D) Use the following information to answer questions Royal Cookware offers its customers a lifetime guarantee that its cookware will not break. The company estimates that 3% of the sets sold will become defective. In 2009, Royal sold 1,000,000 sets of cookware. Royal did not have any cookware returned for defects in that year. However, in 2010, 2,800 sets were returned to Royal for defects. Royal's average estimated cost to repair a set of cookware is $40. -Which of the following journal entries would be made in 2010 to record Royal's repair costs of $85,000 for parts and $24,000 for labor? A) B) C) D) E)
E) Use the following information to answer questions Royal Cookware offers its customers a lifetime guarantee that its cookware will not break. The company estimates that 3% of the sets sold will become defective. In 2009, Royal sold 1,000,000 sets of cookware. Royal did not have any cookware returned for defects in that year. However, in 2010, 2,800 sets were returned to Royal for defects. Royal's average estimated cost to repair a set of cookware is $40. -Which of the following journal entries would be made in 2010 to record Royal's repair costs of $85,000 for parts and $24,000 for labor? A) B) C) D) E)

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