Required:1. Prepare the adjustment to correct the estimated warranty liability on December 31, 2022. In 2021, Beginner Pottery Company began selling a new calculator that carried a two-year warranty against defects.Beginner Pottery projected the estimated warranty cost (as a percent of sales) as follows:First year of warrantySecond year of warranty4%10%Sales and actual warranty repairs were:20229,000,000560,0002021Sales5,000,000200,000Actual warranty repairs

Warranty is a form of assurance being provided by the seller to the buyer that in case product will…

Answered: Required: 1. Prepare the adjustment to…

Business

Accounting

Required: 1. Prepare the adjustment to correct the estimated warranty liability on December 31, 2022.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 57BE

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Question

Required:
1. Prepare the adjustment to correct the estimated warranty liability on December 31, 2022.

In 2021, Beginner Pottery Company began selling a new calculator that carried a two-year warranty against defects.
Beginner Pottery projected the estimated warranty cost (as a percent of sales) as follows:
First year of warranty
Second year of warranty
4%
10%
Sales and actual warranty repairs were:
2022
9,000,000
560,000
2021
Sales
5,000,000
200,000
Actual warranty repairs

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