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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
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. What is the impact on the May income statement from the sale of the 1,800 products (calculate the net impact of any revenues minus any expenses)? If the impact on the income statement is positive, enter a positive number. If the impact on the income statement is negative, place a negative sign in front of the number. If there is no impact, enter a zero. Do not use dollar signs or commas. 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. What is the impact on the May income statement from the sale of the 1,800 products (calculate the net impact of any revenues minus any expenses)? If the impact on the income statement is positive, enter a positive number. If the impact on the income statement is negative, place a negative sign in front of the number. If there is no impact, enter a zero. Do not use dollar signs or commas
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