Mielé Appliances estima warranty payablé of Duri 2017, Miele made sales of $100000 and expects product warranties to cost 4% of the sales. During 2017, Miele paid $2800 for warranties. What is Miele's estimated warranty payable at the end of 2017? a $3 500 b $2 500 c $2200 d $1 500

Mielé Appliances estima warranty payablé of Duri 2017, Miele made sales of $100000 and expects product warranties to cost 4% of the sales. During 2017, Miele paid $2800 for warranties. What is Miele's estimated warranty payable at the end of 2017? a $3 500 b $2 500 c $2200 d $1 500

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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Question

6 Miele Appliances owed estimated warranty payable of $1000 at the end of 2016. During
2017, Miele made sales of $100000 and expects product warranties to cost 4% of the sales.
During 2017, Miele paid $2800 for warranties. What is Miele's estimated warranty payable
at the end of 2017?
a $3 500
b $2 500
c $2 200
d $1 500

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