PHE, Inc.estimates warranty expense at 2% of sales. Sales during the year were $4 million and warranty related cash expenditures were $34,000.  What was the balance in the Warranty Liability account at the end of the year?   Select one: a. $80,000 b. $36,000 c. $34,000 d. $46,000 e. $56,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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PHE, Inc.estimates warranty expense at 2% of sales. Sales during the year were $4 million and warranty related cash expenditures were $34,000. 

What was the balance in the Warranty Liability account at the end of the year?


 

Select one:
a. $80,000
b. $36,000
c. $34,000
d. $46,000
e. $56,000
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