On January 1, 2019, the beginning balance in the Warranties Liability account was $95,000. Cash sales...

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On January 1, 2019, the beginning balance in the Warranties Liability account was $95,000. Cash sales for 2019 totaled $800,000 and credit sales totaled $500,000. The company estimates warranty costs at 5% of sales. During the year, $85,000 was paid to settle warranty claims. As a result of these transactions, what is the amount of warranty liability that is reported on the company's 2019 year-end balance sheet? Answer: $ On January 1, 2019, the beginning balance in the Warranties Liability account was $95,000. Cash sales for 2019 totaled $800,000 and credit sales totaled $500,000. The company estimates warranty costs at 5% of sales. During the year, $85,000 was paid to settle warranty claims. As a result of these transactions, what is the amount of warranty liability that is reported on the company's 2019 year-end balance sheet? Answer: $

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To calculate the warranty liability reported on the companys 2019 yearend balance sheet we ne... View the full answer