Question
A company has a selling price of $1,900 each for its printers. Each printer has a 2 year warranty that covers replacement of defective parts.
A company has a selling price of $1,900 each for its printers. Each printer has a 2 year warranty that covers replacement of defective parts. It is estimated that 2% of all printers sold will be returned under the warranty at an average cost of $152 each. During November, the company sold 32,000 printers, and 420 printers were serviced under the warranty at a total cost of $57,000. The balance in the Estimated Warranty Liability account at November 1 was $30,000. What is the company's warranty expense for the month of November? A.48,640 B. 63,840 C. 97,280 D. 27,000 E. 57,000
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