Question: Tanner Toys had sales of 2 500 000 during 2012 In 2011

Tanner Toys had sales of $2,500,000 during 2012. In 2011, 5% of sales were returned for a refund, but Tanner believes that recent product changes will reduce warranty expense to about 3% of 2012 sales.
Required
a. What amount is Tanner expecting to refund customers for purchases made in 2012?
b. Should this amount be reported as a liability on the financial statements? Why or why not?
c. Is Tanner using a reasonable means to estimate warranty expense?

View Solution:


Sale on SolutionInn
Sales0
Views81
Comments
  • CreatedJuly 16, 2015
  • Files Included
Post your question
5000