Ranch Company estimates warranty expense as 5% of sales. On January 1, warranties payable was $13,000. During

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Ranch Company estimates warranty expense as 5% of sales. On January 1, warranties payable was $13,000. During the year Ranch paid $5,000 to meet its warranty obligations and recorded sales of $120,000. The December 31 liability for the warranty is

$10,000.$12,000.$6,000.$14,000.

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Accounting Principles

ISBN: 978-1119048503

7th Canadian Edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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Posted Date: May 16, 2020 01:22 PM

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Ranch Company estimates warranty expense as 5% of sales. On January 1, warranties payable was $13,000. During

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Estimated Warranty Liability512000... View the full answer

Accounting Principles

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