Journalize the Following Transactions: Dec $\quad$ The Accrued Product Warranty Expense for the Year Is Estimated

question 90

Essay

Journalize the following transactions: Dec. 31 $\quad$ The accrued product warranty expense for the year is estimated to be $1.5 \%$ of
$\quad$$\quad$$\quad$ sales. Sales for the year totaled $\$ 7,760,000$ .
31 $\quad$ The accrued vacation pay for the year is estimated to be $\$ 46,000$ .
31 $\quad$ Paid Reliable Insurance Co. $\$ 85,000$ as fund trustee for the pension plan. The annual
$\quad$$\quad$ pension cost is $\$ 109,000$ .

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Definitions:

Variable Costs

Expenses that change in proportion to the activity of a business.

Marginal Costs

The additonal cost incurred by producing one more unit of a product or service.

Elasticity of Demand

The elasticity of demand measures how responsive the quantity demanded of a good or service is to a change in its price, indicating the sensitivity of consumers to price changes.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or to different customers.