Warranty liability: Warranty liability is a liability which describes the estimated costs that a business expects to spend on repair or replacement of its goods that it has sold during the warranty period. Warranty liability amount is recorded at the time of sale. To Calculate: the amount the Company S would report as a liability at the end of the year.

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Chapter 8, Problem 8.9BE

To determine

Warranty liability:

Warranty liability is a liability which describes the estimated costs that a business expects to spend on repair or replacement of its goods that it has sold during the warranty period. Warranty liability amount is recorded at the time of sale.

To Calculate: the amount the Company S would report as a liability at the end of the year.

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