Jonesy Used Cars offers a one-year warranty from the date of sale on all cars it...

 

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Jonesy Used Cars offers a one-year warranty from the date of sale on all cars it sells. From historic data, Bill jones estimates that, on average, each car will require the company to incur a warranty cost of $820. The following activities occurred during 2017: Jonesy Used Cars 2017 Sales Data Feb 4 Sold five cars. Mar 23 Sold ten cars. May 20 Incurred warranty costs of $6,000 on four cars sold in 2016. July 6 Sold eight cars. Sep 1 Incurred warranty costs of $5,000 on five cars sold in 2016. Nov 14 Incurred warranty costs of $4,000 on one car sold in 2016. Dec 22 Sold twelve cars. If the January 1, 2017, beginning balance in the warranty liability account was $2,500, what would be the year-end warranty liability balance? $31,200 $16,200 $11,200 $13,700 None of these choices is correct. Jonesy Used Cars offers a one-year warranty from the date of sale on all cars it sells. From historic data, Bill jones estimates that, on average, each car will require the company to incur a warranty cost of $820. The following activities occurred during 2017: Jonesy Used Cars 2017 Sales Data Feb 4 Sold five cars. Mar 23 Sold ten cars. May 20 Incurred warranty costs of $6,000 on four cars sold in 2016. July 6 Sold eight cars. Sep 1 Incurred warranty costs of $5,000 on five cars sold in 2016. Nov 14 Incurred warranty costs of $4,000 on one car sold in 2016. Dec 22 Sold twelve cars. If the January 1, 2017, beginning balance in the warranty liability account was $2,500, what would be the year-end warranty liability balance? $31,200 $16,200 $11,200 $13,700 None of these choices is correct.