Patton Company warrants its products against defects for three years from date of sale. During the current
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Patton Company warrants its products against defects for three years from date of sale. During the current year, the company made sales of $300.000. Store management estimated that warranty costs on those sales would total 6% of sales over the three-year warranty period. Ultimately, the company paid $22,000 cash on war- ranties. What was the company's warranty expense for the year? What accounting principle governs this answer?
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Related Book For
Accounting
ISBN: 9780130906991
5th Edition
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones
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