A Company Sells Tablet Computers for $1,300 Each

question 95

Essay

A company sells tablet computers for $1,300 each.The price includes a two-year warranty.During the current year,the company sells 400 tablets.On the basis of past experience,the warranty costs are estimated to be $280 per tablet.The actual warranty costs (paid in cash)by the company during the current year were $65,000.Prepare general journal entries to record the (a)estimated warranty expense and (b)warranty repair costs during current year.

Understand the concept of compound interest and calculate future values of investments compounded at different periods.

Solve logarithmic equations and understand the properties of logarithms.

Determine the principal amount required for future investments using compound interest formulas.

Estimate the time required for an investment to grow to a specific amount under compound interest.

---

Definitions:

Fovea

A small depression in the retina of the eye where visual acuity is highest.

Pupil

The black circular opening in the center of the eye's iris that regulates the amount of light that enters.

Iris

The colored part of the eye that controls the size of the pupil and the amount of light that enters the eye.

Axons

Long, slender projections of neurons that transmit electrical impulses away from the neuron's cell body to other neurons or to muscles or glands.