Prist co. had not provided a warranty on its products, but competitive pressures forced management to add this feature beginning 2013. Based on an analysis of customer complaints made over the past two years, the cost of a warranty was estimated at 0.3% of sales. During 2013, sales totaled $3,450,000. Actual costs of servicing products under warranty totaled $9,700. Required:

a. Use horizontal model (or a T account of the estimated warranty liability) to show the effect of having the warranty program during 2013.

b. What type of accrual adjustment should be made at the end of 2013

c. Describe how the amount of the accrual adjustment could be determined.

Select the word from the list that best fits the definition sometimes

Insurance companies have internal controls in place to protect assets, monitor the accuracy of accounting records and encourage operational efficiencies and adherence to policies. these internal controls are generally of two types: administrative controls and accounting controls. administrative controls are the policies and procedures that guide the daily actions of employees. accounting controls are the policies and procedures that delineate authorizations of financial transactions that are done, safeguard assets, and provide reports on the company’s financial status in a reliable and timely manner. internal controls should include both preventative and detective controls. the purpose of preventative controls is to stop problems and errors before they occur. detective controls identify problems after they have occurred. preventative controls are usually more effective at reducing problems, but they also tend to be more expensive. internal controls must be flexible to adjust for changes in laws and regulations in addition to adding new products or modifying current ones. companies must also do regular analyses to ensure that the benefits of implementing the controls are worth their costs. when concerned about paying unwarranted insurance claims which type of control would be useful?

Carrie works at a canned food production factory. the government wanted to give a boost to the salt industry, so it lined up numerous subsidies and tax exemptions for the sector. this lead to a decrease in production costs. this also meant that consumers could access canned foods at a lower price, which lead to an increase in demand for the product. which kind of economic system is carrie’s company dealing with? carrie’s company is dealing with a/an economy.