A company has a selling price of $1,900 each for its printers. Each printer has

Question

A company has a selling price of $1,900 each for its printers. Each printer has a 2 year warranty that covers replacement of defective parts. It is estimated that 2% of all printers sold will be returned under the warranty at an average cost of $152 each. During November, the company sold 32,000 printers, and 420 printers were serviced under the warranty at a total cost of $57,000. The balance in the Estimated Warranty Liability account at November 1 was $30,000. What is the company's warranty expense for the month of November?

Explanation / Answer

Total Provision for warrany expense = $ 32000*2%*152 = $97280

Estimated waarany liability acocunt = $30000

Therefore Warrany Expense = $ 97280 - 30000 = $67280

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.