The balance of the Estimated Warranty Liability account was $25,000 on January 1, 2019, and $34,400 on
Question:
The balance of the Estimated Warranty Liability account was $25,000 on January 1, 2019, and $34,400 on December 31, 2019. Based on an analysis of warranty claims during the past several years, this year’s warranty provision was established at 1.5% of sales, and sales during the year were $6,500,000.
Required:
a. What amount of warranty expense will appear on the income statement for the year ended December 31, 2019?
b. What were the actual costs of servicing products under warranty during the year?
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a b Warranty Expense 6500000 sales 15 estimated warranty expense 97500 Estimat...View the full answer
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Related Book For 
Accounting What the Numbers Mean
ISBN: 978-1260565492
12th edition
Authors: David Marshall, Wayne McManus, Daniel Viele
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