Mark M. Upp has just been fired as the university book store manager for setting prices too low (only 20% above suggested retail

a. Cash Dr, $5,400

     To Sales $5,400

(Recording sales transaction)

b. Warranty Expense Dr, $330  

Estimated Warranty Liability $330

(Recording recognized warranty expense)  

($5,500 × 6%)

c. Estimated Warranty Liability Dr, $435

       To Inventory $435

(Recording warranty execution)  

(29 razors × $15)

d. Cash Dr, $16,200  

       To Sales $16,200

(Recording sales transaction)

e. Estimated Warranty Liability Dr, $360

        To Inventory $360

(Recording warranty execution)

(24 × $15)

f. Warranty Expense Dr, $972

           To Estimated Warranty Liability $972

(Recording recognized warranty expense)

($16,200 × 6%)

2. The amount of warranty expense for November 2016 and December 2016 is as follows:-

Warranty Expense for Nov 2016 = $5,500 × 6%

= $330

Warranty Expense for Dec 2016 = $16,200 × 6%

= $972

3. The warranty expense for January 2017 is computed as follows:-

Warranty Expense for Jan 2017 =$10,800 × 6%

=$648

4. The balance of the Estimated Warranty Liability account on December 31, 2016 is calculated as:-

Balance of Estimated Warranty Liability on 31 Dec 2016 = Warranty Liability for Nov 2016 + Warranty Liability for Dec 2016 - Warranty Claim in Dec 2016

=$330 + $972 - $648

=$654

5. The balance of the Estimated Warranty Liability account on January 31, 2017 is calculated as:-

Balance of Estimated Warranty Liability on 31st Jan 2017 = Balance on 31 Dec 2016 + Warranty Liability for Jan 2017 - Warranty Claim in Jan 2017

=$654 + $648 - (29 × $15)

=$654 + $648 - $435

=$867

The definitions are accurately paired with their corresponding terms

Explanation:

1. Operating cycle - C. The duration necessary to procure goods or services from suppliers, distribute them to customers, and collect payment from those customers.

2. Accrual basis accounting- B. Record expenses when they are incurred to generate revenue.

3.  Retained Earnings = Beginning Retained Earnings + Net Income - Dividends Declared -  J. This represents the equation from the income statement.

4. Unearned revenue - F. This asset account captures cash paid in advance of incurred expenses.

5. Revenues - Expenses = Net Income - L. This is known as the retained earnings equation.

6. Expenses  - I. Record revenues when received and expenses when they are disbursed.

7. Prepaid Expenses  -  A. To report the longevity of a business over shorter periods.

8. Gains  - E. These are increases in assets or reductions in liabilities resulting from peripheral transactions.

9. None of these are accurate

If a business finds itself with reduced profits, it might pursue various strategies to enhance its current products instead of creating new ones since this path typically incurs lower costs and potentially boosts profitability. The preferable responses are B. Product Extension and C. New Product Placement.

Reintroduction involves launching the product with a more inventive marketing strategy. It can focus on a different market segment, provide better information about the product, and utilize more engaging advertisements. Adjustments to the product's packaging can also help it appear more appealing and new.

Product extension targets new markets, which can include exporting goods. While this strategy might carry higher costs, it can elevate the product's quality by meeting export standards. It’s about shifting markets, not altering the product.

New product placement is when products are promoted through media. For instance, showcasing products in films allows characters to use them, thus raising awareness among viewers about how to use them while simultaneously promoting the brand, without changing any product features, merely the media placement.

<span>Rebranding can also be a viable strategy. This means introducing a product under a new name and modifying not only the packaging but the overall presentation. This can provide a fresh image aimed at attracting a new audience or expanding the existing one.</span>

Answer: 90 days and 4.06 times

Explanation:

The short-term operating cycle is calculated by adding Average production process time + Days goods are held + Days Accounts receivable are due]

= 40 + 15 + 35

= 90 days

With a 365-day year, the cycle will turnover;

= 365/90

= 4.0556

= 4.06 times