EZ Wheels Corporation manufactures kick scooters. The company offers a one-year warranty on all scooters. During the year, the company recorded net sales of $1,520 million. Historically, about 4% of all sales are returned under warranty and the cost of repairing and or replacing goods under warranty is about 30% of retail value. Assume that at the start of the year EZ Wheels’ balance sheet included an accrued warranty liability of $13.0 million and at the end of the year the accrued warranty liability balance was $9.9 million.

How much did EZ Wheels pay during the year to repair and/or replace scooters under warranty?

A) $ 9.9 million

B) $21.3 million

C) $18.2 million

D) $60.8 million

E) None of these are correct.

Answer rating: 100% (QA)

C 182 million EZ Wheels Corporation manufactures kick scooters The company offers a oneyear warranty ... View the full answer