In 2015, Slim Drug Company began to notice problems with its obesity drug. The company stopped selling the drug near the end of 2015. In the last six months of 2016, the company was sued by 1,000 people who had an allergic reaction to the company's obesity drug. At the end of 2016, the company's attorneys believe there is a 60% chance the company will need to make payments in the range of $1,000 to $5,000 to settle each claim. At the end of 2017, while none of the cases have been resolved, the company's attorneys now believe there is an 80% chance the company will need to make payments in the range of $2,000 to $7,000 to settle each claim. In 2018, 400 claims were settled at a total cost of $1.2 million. Based on this experience, the company believes 30% of the remaining cases will be settled for $3,000 each, 50% will be settled for $5,000 and 20% will be settled for $10,000 each. Using U. S. GAAP what journal entries would be required in 2017.
Answers: 1
Another question on Business
Business, 21.06.2019 15:00
He cornerstone of arsoac, the is organized into four like battalions and provides nighttime, all-weather, medium range insertion, extraction, and resupply capability in hostile or denied areas.
Answers: 2
Business, 22.06.2019 10:30
6carla would like to buy a dress, a dresser for her bedroom, and a home theater system. she has one month's worth of living expenses in her emergency fund. carla decides to save for the home theater system. did carla make the right decision? why or why not? a. yes; her emergency fund is full and the other items will probably be less expensive. b. yes; she could save more for her emergency fund, but the home theater will be harder to save for. c. no; she should save more for her emergency fund because she has saved less than the recommended amount. d. no; she should have bought the dress and dresser first because she could afford them right away. reset next
Answers: 2
Business, 22.06.2019 19:10
Ancho corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel- based cars. the company realizes that more of its potential customers are switching to electric cars. the r& d department of the company acquires competencies in developing electric cars and launches its first hybrid car, which uses both gas and electricity. in this scenario, ancho is primarilya. leveraging new core competencies to improve current market position. b. redeploying existing core competencies to compete in future markets. c. unlearning existing core competencies to create and compete in markets of the future. d. building new core competencies to protect and extend current market position
Answers: 3
Business, 22.06.2019 20:50
The following accounts are from last year’s books at s manufacturing: raw materials bal 0 (b) 157,400 (a) 172,500 15,100 work in process bal 0 (f) 523,600 (b) 133,700 (c) 171,400 (e) 218,500 0 finished goods bal 0 (g) 477,000 (f) 523,600 46,600 manufacturing overhead (b) 23,700 (e) 218,500 (c) 27,700 (d) 159,400 7,700 cost of goods sold (g) 477,000 s manufacturing uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. what is the amount of cost of goods manufactured for the year
Answers: 3
You know the right answer?
In 2015, Slim Drug Company began to notice problems with its obesity drug. The company stopped selli...
Questions
Mathematics, 13.02.2020 00:42
Mathematics, 13.02.2020 00:42
English, 13.02.2020 00:43
Social Studies, 13.02.2020 00:43
