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ABC sells products to customers with a warranty. Customers can return the products to ABC for a free replacement within 9 0 days of purchase.

ABC sells products to customers with a warranty. Customers can return the products to ABC for a free replacement within 90 days of purchase. During April 2022, ABC sold 1,500 products to customers. During May, ABC sold 1,800 products to customers. Based on past sales, ABC estimates that 5% of all products sold will be returned for a free replacement. The products cost ABC $20 to produce and they are sold for $35 per item. During April, 100 products were returned and during May, 120 items were returned. As of March 31,2022, ABC's Warranty Liability had a credit balance of $12,000.
If ABC had an inventory balance of $80,000 on March 31,2022, what should the inventory balance be on April 30,2022? No purchases of inventory were made during April or May, 2022.Question 8
ABC sells products to customers with a warranty. Customers can return the
products to ABC for a free replacement within 90 days of purchase. During April
2022, ABC sold 1,500 products to customers. During May, ABC sold 1,800
products to customers. Based on past sales, ABC estimates that 5% of all
products sold will be returned for a free replacement. The products cost ABC
$20 to produce and they are sold for $35 per item. During April, 100 products
were returned and during May, 120 items were returned. As of March 31,2022,
ABC's Warranty Liability had a credit balance of $12,000.
If ABC had an inventory balance of $80,000 on March 31,2022, what should the
inventory balance be on April 30,2022? No purchases of inventory were made
during April or May, 2022.
Please enter all amounts as a positive number with no dollar signs or commas. For
example, if the answer is $2,100, enter 2100.
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