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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Financial Accounting

ISBN: 9781292019543

3rd Global Edition Edition

Authors: Robert Kemp, Jeffrey Waybright, Pearson Education

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