Question
1. (TCO D) Electronics4U manufactures high-end whole home electronic systems. The company provides a 1-year warranty for all products sold. The company estimates that the
1. (TCO D) Electronics4U manufactures high-end whole home electronic systems. The company provides a 1-year warranty for all products sold. The company estimates that the warranty cost is $200 per unit sold, and it reported a liability for estimated warranty costs of $1,000,000 at the beginning of this year. If, during the current year, the company sold 50,000 units for a total of $243 million and paid warranty claims of $7,500,000 on current and prior-year sales, what amount of liability would the company report on its balance sheet at the end of the current year? (Points : 5) a)$2,500,000 b)3,500,000 c)$9,000,000 d)$10,000,000
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