Question
Akers Co. had a balance of $91,000 in its quality-assurance warranty liability account as of December 31, 2020. In 2021, Akers Co.'s warranty expenditures paid
Akers Co. had a balance of $91,000 in its quality-assurance warranty liability account as of December 31, 2020. In 2021, Akers Co.'s warranty expenditures paid were $456,000. Its warranty expense is calculated as 1% of sales. Sales in 2021 were $41.1 million. What was the balance in the warranty liability account as of December 31, 2021?
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
10th edition
1260481956, 1260310175, 978-1260481952
