Wells Electric (WE) owed Estimated Warranty Payable of $1,200 at the end of 2023. During 2024, WE

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Wells Electric (WE) owed Estimated Warranty Payable of $1,200 at the end of 2023.

During 2024, WE made sales of $120,000 and expects product warranties to cost the

company 3% of the sales. During 2024, WE paid $2,300 for warranties. What is WE’s

Estimated Warranty Payable at the end of 2024?

a. $2,300 b. $2,500 c. $3,600 d. $4,800

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Accounting

ISBN: 9780132439602

7th Edition

Authors: Charles T. Horngren, Walter T. Harrison

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Question Posted: Feb 02, 2024 05:01 AM

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Wells Electric (WE) owed Estimated Warranty Payable of $1,200 at the end of 2023. During 2024, WE

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Accounting

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