A company sold 10,000 TVs in July and estimates warranty expense for these TVs to be $25,000. During July, 80 TVs were serviced under warranty at a cost of $18,000. The credit balance in the Estimated Warranty Liability account at July 1 was $26,000. What is the company’s warranty expense for the month of July? a. $51,000 c. $25,000 e. $18,000 b. $1,000 d. $33,000
A company sold 10,000 TVs in July and estimates warranty expense for these TVs to be $25,000. During July, 80 TVs were serviced under warranty at a cost of $18,000. The credit balance in the Estimated Warranty Liability account at July 1 was $26,000. What is the company’s warranty expense for the month of July? a. $51,000 c. $25,000 e. $18,000 b. $1,000 d. $33,000
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 12Q: A companys sales for January are $250,000. If the company projects warranty obligations to be 5% of...
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Question
A company sold 10,000 TVs in July and estimates warranty
expense for these TVs to be $25,000. During July, 80 TVs
were serviced under warranty at a cost of $18,000. The
credit balance in the Estimated Warranty Liability account
at July 1 was $26,000. What is the company’s warranty expense
for the month of July?
a. $51,000 c. $25,000 e. $18,000
b. $1,000 d. $33,000
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