What amount should be reported as the warranty liability for 2021 and 2022, respectively? * The selling price of Maning-Mani Appliances Company's unit is Php10,000 each. The buyers are provided with a 2-year warranty that is expected to cost the company Php1,000 per unit in the year of sale and Php2,000 per unit in the year following the sale The company sold 400 units in 2021 and 250 units in 2022. Based on company estimates, 20% of the units sold are repaired in the first year and 40% in the second year. Payments for warranty repairs were Php220,000 and Php300,000 in 2021 and 2022, respectively.

What amount should be reported as the warranty liability for 2021 and 2022, respectively? * The selling price of Maning-Mani Appliances Company's unit is Php10,000 each. The buyers are provided with a 2-year warranty that is expected to cost the company Php1,000 per unit in the year of sale and Php2,000 per unit in the year following the sale The company sold 400 units in 2021 and 250 units in 2022. Based on company estimates, 20% of the units sold are repaired in the first year and 40% in the second year. Payments for warranty repairs were Php220,000 and Php300,000 in 2021 and 2022, respectively.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter9: Working Capital

Section: Chapter Questions

Problem 34E

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