A company provides a warranty on its products that it sells to customers. The warranty liability account had $1,200 balance on April 1. The company had sales of $67,000 in April and estimated warranty repairs at 3% of sales. During the month, the company actually paid out $2,400 for warranty repairs.
Determine the April 30 balance in the estimated warranty liability account.4. Contingent Liabilities 6. The Effect of Uncollectible Accounts
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|2||The Effect of Bad Debt Expense||Easy|
|3||Calculating Bad Debts||Moderate|
Contingent Liabilities - Warranties
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|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|