Carpet Company had a balance of P800,000 in the warranty liability account on December 31, 2020. The warranty expenditures totaled P2,500,000 for 2021. The warranty expense is calculated at 6% of sales. Sales amounted to P40,000,000 for 2021. What was the balance in the warranty liability account on December 31, 2021?

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A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

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A: Warranty expense recognized in a particular year is calculated on the basis of expected number of…

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A: Warranty liability is a liability account. Warranty expense is part of the operating expenses.

Q: The business receives a promissory note of P50,000, carrying an interest rate of P10%. The note is…

A: Accrued income is that income which are earned by the business but the amount is yet to be received…

Q: 2. During 2020, Joaquin Company introduced a new line of machines that carry a two-year warranty…

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A: Interest: It refers to the charge which is paid by a borrower to the lender for using his funds.

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A: Interest = Principal x rate of interest x no. of months/12 months

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A: The account name and the calculation of amount to be included as a current liability on Electrical's…

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A: The question is based on the concept of Financial Accounting.

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A: The question is based on the concept of Financial Accounting.

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A: The warranty Expenses are estimated on the basis of sales made during the period and past year…