At the beginning of 2021, Angel Corporation began offering a two-year warranty on its products. The warranty
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Question:
At the beginning of 2021, Angel Corporation began offering a two-year warranty on its products. The warranty program was expected to cost Angel 4% of net sales. Net sales made under warranty in 2021 were $197 million. Fifteen percent of the units sold were returned in 2021 and repaired or replaced at a cost of $5.10 million. The amount of warranty expense on Angel's 2021 income statement is
Multiple Choice
$29.55 million.
$11.28 million.
$5.10 million.
$7.88 million.
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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