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A company offers a five-year warranty on its products. The company previously estimated warranty costs to be 3% of sales but in 2025 revised this

A company offers a five-year warranty on its products. The company previously estimated warranty costs to be 3% of sales but in 2025 revised this estimate to 1% due to process and quality control improvements. The company reported warranty cost of 78200 on $2600000 in 2023 and $93200 on $3100000 in 2024. Sales revenue for 2025 was $5210000. What is the adjustments to retained earnings in 2025 (ignore income tax consideration)?
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A company offers a five-year warranty on its products. The company previously estimated warranty costs to be 3% of sales but in 2025 revised this estimate to 1% due to process and quality control improvements. The company reported warranty cost of 78200 on $2600000 in 2023 and $93200 on $3100000 in 2024 . Sales revenue for 2025 was $5210000. What is the adjustments to retained earnings in 2025 (ignore income tax consideration)

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