Northern Electric owed Estimated Warranty Payable of $1,700 at the end of 2013. During 2014, Northern Electric
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Northern Electric owed Estimated Warranty Payable of $1,700 at the end of 2013.
During 2014, Northern Electric made sales of $180,000 and expects product warranties to cost the company 3% of the sales. During 2014, Northern Electric paid $4,300 for warranties. What is Northern Electric’s Estimated Warranty Payable at the end of 2014?
a. $8,000
b. $2,800
c. $7,100
d. $5,400 AppendixLO1
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Related Book For
Financial Accounting
ISBN: 9781292019543
3rd Global Edition Edition
Authors: Robert Kemp, Jeffrey Waybright, Pearson Education
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