During 2019, Namnama Company introduced a new product carrying a two-year warranty against defects The estimated warranty costs related to peso sales are 4% within 12 months following sales and 6% in the second 12 months following sale. The entity reported sales of 5,000,000 for 2019 and 6,000,000 for 2020. The actual expenditures incurred amounted to 150,000 for 2019 and 550,000 for 2020 O 500,000 O 200,000 O 250,000 O 300,000

During 2019, Namnama Company introduced a new product carrying a two-year warranty against defects The estimated warranty costs related to peso sales are 4% within 12 months following sales and 6% in the second 12 months following sale. The entity reported sales of 5,000,000 for 2019 and 6,000,000 for 2020. The actual expenditures incurred amounted to 150,000 for 2019 and 550,000 for 2020 O 500,000 O 200,000 O 250,000 O 300,000

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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