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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|2||The Effect of Bad Debt Expense||Easy|
|3||Calculating Bad Debts||Moderate|
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|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|
|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|
|8||Interest Bearing Notes||8:26|
|9||Non-interest Bearing Notes||6:16|