The following events were incurred by Pulliam Inc.:
·During 2010, Pulliam sold 100,000 televisions and estimates that 2% of all television sets sold will become defective. The average cost of repairing one defective television set is $35. Warranty expense is recognized at year-end.
·Pulliam's weekly 5-day payroll includes the following:
on Friday, December 24. December 31 was on a Friday.

·Vacation pay should be accrued at a rate equivalent to 4% of gross payroll. However, Pulliam estimates that, because of turnover, only 85% of the total vacation will actually be taken by employees.
Required:

Question

The following events were incurred by Pulliam Inc.:
·During 2010, Pulliam sold 100,000 televisions and estimates that 2% of all television sets sold will become defective. The average cost of repairing one defective television set is $35. Warranty expense is recognized at year-end.
·Pulliam's weekly 5-day payroll includes the following:
on Friday, December 24. December 31 was on a Friday.
  
·Vacation pay should be accrued at a rate equivalent to 4% of gross payroll. However, Pulliam estimates that, because of turnover, only 85% of the total vacation will actually be taken by employees.
Required:

Quizplus · Accepted Answer

The Answer of The following events were incurred by Pulliam Inc.:
·During 2010, Pulliam sold 100,000 televisions and estimates that 2% of all television sets sold will become defective. The average cost of repairing one defective television set is $35. Warranty expense is recognized at year-end.
·Pulliam's weekly 5-day payroll includes the following:
on Friday, December 24. December 31 was on a Friday.
  
·Vacation pay should be accrued at a rate equivalent to 4% of gross payroll. However, Pulliam estimates that, because of turnover, only 85% of the total vacation will actually be taken by employees.
Required:

The Following Events Were Incurred by Pulliam Inc