A new product introduced by Beauty Promotions carries a two-year warranty against defects. The estimated warranty costs related to sales are as follows: Year of sale 3% Year after sale 5% Sales and actual warranty expenditures for the years ended Dec. 31, 2019 and 2020 are as follows: Sales Actual Warranty Expenditures P 800,000 P 20,000 2019 2020 1,000,000 70,000 What amount should Beauty report as its estimated liability as of Dec. 31, 2020?

A new product introduced by Beauty Promotions carries a two-year warranty against defects. The estimated warranty costs related to sales are as follows: Year of sale 3% Year after sale 5% Sales and actual warranty expenditures for the years ended Dec. 31, 2019 and 2020 are as follows: Sales Actual Warranty Expenditures P 800,000 P 20,000 2019 2020 1,000,000 70,000 What amount should Beauty report as its estimated liability as of Dec. 31, 2020?

Name: A.P 54,000B.P 74,000C.P 4,000D.P 24,000 A new product introduced by Be
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Description: A.P 54,000B.P 74,000C.P 4,000D.P 24,000 A new product introduced by Beauty Promotions carries a two-year warranty against defects.The estimated warranty costs related to sales are as follows:Year of sale3%Year after sale5%Sales and actual warranty ex

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 10E

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