A company estimates the cost of products warranties to be 3% of sales. The beginning balance in Estimated Warranty Liability account is $15,000. Sales for the period was $795,000. During the period, $32,600 was actually paid for warranty related costs. What is the ending balance in the Warranty Liability account?
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| 1 | Liability Classification | Easy | |
| 2 | The Effect of Bad Debt Expense | Easy | |
| 3 | Calculating Bad Debts | Moderate | |
| 4 |
Contingent Liabilities
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Moderate | |
| 5 | Contingent Liabilities - Warranties | Moderate | |
| 6 | The Effect of Uncollectible Accounts | Moderate | |
| 7 | Using the Balance Sheet Method | Hard |
| 1 | A/R and Bad Debts Introduction | 7:09 | |
| 2 | Direct Method | 4:15 | |
| 3 | The Allowance Method | 8:56 | |
| 4 | Income Statement vs Balance Sheet Methods | 13:14 | |
| 5 | Net Credit Sales | 5:20 | |
| 6 | Write Offs and Reinstatements | 8:26 | |
| 7 | Notes Receivable | 11:27 | |
| 8 | Interest Bearing Notes | 8:26 | |
| 9 | Non-interest Bearing Notes | 6:16 | |
| 10 | Contingencies | 5:58 |