Bull has a one-year product warranty on selected items in its product line. The estimated warranty liability on sales made during 2021, which was outstanding as of December 31, 2021, amounted to P416,000. The warranty cost on sales made in 2022 are estimated at P1,504,000. Actual warranty costs incurred during the current 2022 fiscal year are as follows. Warranty claims honored on 2021 sales P 416,000 Warranty claims honored on 2022 sales 992,000 Total Warranty Claims honored P1,408,000 Required: How much is the estimated warranty liability as of December 31, 2022?
Bull has a one-year product warranty on selected items in its product line. The estimated warranty liability on sales made during 2021, which was outstanding as of December 31, 2021, amounted to P416,000. The warranty cost on sales made in 2022 are estimated at P1,504,000. Actual warranty costs incurred during the current 2022 fiscal year are as follows. Warranty claims honored on 2021 sales P 416,000 Warranty claims honored on 2022 sales 992,000 Total Warranty Claims honored P1,408,000 Required: How much is the estimated warranty liability as of December 31, 2022?
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
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 10RE
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Bull has a one-year product warranty on selected items in its product line. The estimated warranty liability on sales made during 2021, which was outstanding as of December 31, 2021, amounted to P416,000. The warranty cost on sales made in 2022 are estimated at P1,504,000. Actual warranty costs incurred during the current 2022 fiscal year are as follows. Warranty claims honored on 2021 sales P 416,000
Warranty claims honored on 2022 sales 992,000 Total Warranty Claims honored P1,408,000
Required: How much is the estimated warranty liability as of December 31, 2022?
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