On August 1, 2016, Bulda Enterprises sold 1,600 sleds to Kristoff Ice Delivery Inc. for $450 cash each. (Ignore COGS here.) Kristoff also purchased a 1-year warranty for $12 cash per sled. Bulda incurred $0 in repair costs for warranty claims in 2016 and $7,000 in 2017. Of the warranty costs, 40% was attributed to parts inventory. The remaining amount was wages paid to workers, which were paid for with cash.

How much revenue is recognized in 2016 for the warranties? 

Answer rating: 100% (QA)

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