$200,000. UESTION 32 Strikers, Inc. sells soccer goals to customers over the Int
ID: 2597318 • Letter: #
Question
$200,000. UESTION 32 Strikers, Inc. sells soccer goals to customers over the Internet. History has shown that 2% of Strikers' goals will nee repair under the warranty program. For the year, Strikers has sold 4,000 goals and 45 have been repaired. If the estimated cost to repair a goal is $200, what would be the Warranty Liability at the end of the year? O$16,000. $7,000 o $9,000. UESTION 33 ilion bond issue when the carrying value of the bonds is $18 million, but the market valuec the bonds is $23 million. The entry to record the retirement will include: OA debit of $5 million to a loss account. A credit of $5 million to a gain account. lick Save and Submit to save and submit. Click Save All Answers to save all answers. Save All (A DEC 13Explanation / Answer
1) Solution: $7,000
Working:
[(4,000 goals * 2%) * $200] = $16,000.
[$16,000 - (45 * $200)] = $7,000
2) Solution: debit of $5 million to a loss account
Explanation: $23 million - $18 milion
3) Solution: Option A
Working: Dr. Dividends $9,000
Cr. Dividends payable $9,000
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