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At the beginning of 2024, Angel Corporation began offering a two-year warranty on its products. The warranty program was expected to cost Angel 8% of
At the beginning of 2024, Angel Corporation began offering a two-year warranty on its products. The warranty program was expected to cost Angel 8% of net sales. Net sales made under warranty in 2024 were $192 million. Fifteen percent of the units sold were returned in 2024 and repaired or replaced at a cost of $4.70 million. The amount of warranty expense on Angel's 2024 income statement is: Multiple Choice $18.76 million. $15.36 million. $4.70 million. $28.80 million
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