Pyott co. sells small appliances and offers warranties on all new sales. during the month of december, pyott's sales were $30,000 and accrued related warranties totaled $300. during january, a customer made a repair claim under the warranty requiring $200 of labor. the journal entry related to the january repair would include a debit to the account in the amount of also estimated warranty liability.

In a fixed-term, level-payment reverse mortgage, sometimes called a reverse annuity mortgage, or ram, a lender agrees to pay the homeowner a monthly payment, or annuity, and expects to be repaid from the homeowner’s equity when he or she sells the home or obtains other financing to pay off the ram. consider a household that owns a $150,000 home free and clear of mortgage debt. the ram lender agrees to a $100,000 ram for 10 years at 6 percent. assume payments are made annually, at the beginning of each year to the homeowner. calculate the annual payment on the ram.