nment CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NEXT Concept for Analysis 4-2 Bobek Inc. has recently reported steadly increasing income. The company reported income of $20,000 in 2014, $25,000 in 2015, and $30,000 in 2016. A number of market analysts have recommended that investors buy the stock because they expect the steady growth in income to continue. Bobek is approaching the end of its fiscal year in 2017, and it again appears to be a good year. However, it has not yet recorded warranty expense Based on prior experience, this year's warranty expense should be around $5,000, but some managers have approached the controller to suggest a larger, more conservative warranty expense should be recorded this year. Income before warranty expense is $43,000. Specifically, by recording a $7,000 warranty accrual this year, Bobek could report an increase in income for this year and still be in a position to cover its warranty costs in future years. The total warranty expense over the 2-year period is $10,000 (c) What is the appropriate accounting in this situation? Appropriate Accounting Income before warranty expense Warranty expense 2017 2018 Income Question Attempts: 0 of 3 used SAVE FOR LATER SUBHIT ANSWER y Policy Y & Sons, Inc. All Rights Reserved. A Division of Version 4.24.12.7 2:16 AM 3/1/2019 search