Villa Company estimated annual warranty expense at 8% of net sales. The following data relate to...

  

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Villa Company estimated annual warranty expense at 8% of net sales. The following data relate to the current year: Warranty liability, January 1 Before adjustment After adjustment 100,000 debit 540,000 credit What amount should be reported as net sales for the current year? Villa Company estimated annual warranty expense at 8% of net sales. The following data relate to the current year: Warranty liability, January 1 Before adjustment After adjustment 100,000 debit 540,000 credit What amount should be reported as net sales for the current year?

Answer rating: 100% (QA)

Step 1 Calculate the change in the warranty liability Change i... View the full answer