Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

تمرين 62

On November 10, 2015, Lee Co. began operations by purchasing coffee grinders for resale. Lee uses the perpetual inventory method. The grinders have a 60-day warranty that requires the company to replace any nonworking grinder. When a grinder is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new grinder is $24 and its retail selling price is $50 in both 2015 and 2016. The manufacturer has advised the company to expect warranty costs to equal 10% of dollar sales. The following transactions and events occurred.