Lopez Inc. reported warranty expense of P 1,900,000 for the current year. The warranty liability account decreased by P200,000 during the year. What amount was incurred for warranty expenditures? a. P 1,900,000 b. P 1,700,000 c. P 2,100,000 d. P 0

Lopez Inc. reported warranty expense of P 1,900,000 for the current year. The warranty liability account decreased by P200,000 during the year. What amount was incurred for warranty expenditures? a. P 1,900,000 b. P 1,700,000 c. P 2,100,000 d. P 0

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

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

Lopez Inc. reported warranty expense of P 1,900,000 for the current year. The warranty liability account decreased by P200,000 during the year. What amount was incurred for warranty expenditures?

a. P 1,900,000
b. P 1,700,000
c. P 2,100,000
d. P 0

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