1.DeeDee added a one-year warranty to one of its computer games this year. It is estimated that the total cost of servicing the warranties on the 2017 sales will be $10,122 (enter the last three digits of your student number). During 2017, $4,750 was refunded to customers for warranty issues on 2017 sales and recorded as warranty expense.
2.DeeDee uses the FIFO Inventory Method in valuing inventory. The inventory balance of $187,500 was based on a physical count at 12/31/2017. Based on your analysis, you have noted that $12,500 of marketing games that belonged to Marketing Majors Inc. was included in the account. You also note that goods were in transit from a vendor on December 31, 2017. The cost of the inventory was $16,200 and the goods were shipped f.o.b. shipping point on December 29, 2017.
3.DeeDee has a straight tax rate of 28%. Income tax expense is Net Income before taxes times 28%. (Hint: Prepare the Income Statement up to Net Income before Taxes and then record this adjusting journal entry.