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A company sells computers that come with a 3-year warranty. The company estimates that warranty expense is, on average, 3% of sales. During the current
A company sells computers that come with a 3-year warranty. The company estimates that warranty expense is, on average, 3% of sales. During the current year, total sales were $2274592, and the company paid $4130 to repair various computers that are under warranty. The warranty liability at the beginning of the year was $29289. What is the balance in the warranty liability account at the end of the year?
Select one:
a. $34819
b. $93397
c. $25159
d. $64108
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