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Alpha Company sells laptops under a 2-year warranty contract that requires the company to replace defective parts and to provide necessary repairs. During 2019, Alpha
Alpha Company sells laptops under a 2-year warranty contract that requires the company to replace defective parts and to provide necessary repairs. During 2019, Alpha sells 350 laptops at a unit price of $2,000. Based on past experience, the 2-year warranty costs are estimated to be $133 for parts and $157 for labor per unit. What is the amount to be reported for the warranty liability by the end of 2019? O A $101,500 OB. $700,000 OC. $46,550 D. $54.950
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