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Back to the Futon sells mattresses. Back to the Futon includes a 3-year manufacturers warranty on each mattress they sell Management estimates that the cost
Back to the Futon sells mattresses. Back to the Futon includes a 3-year manufacturers warranty on each mattress they sell Management estimates that the cost of providing the warranty coverage is 3% of sales in the first year and 4% of sales in the second and third year. Other information Back to the Futon reported a $296,523 provision for warranty payable on its December 31, 2018 balance sheet Back to the Futon's sales totalled $6.493.479 for 2019 and 56,457,880 for 2020: Sales were spread evenly throughout the year The cost to Back to the Futon of meeting their warranty claims in 2019 was 5369560. The cost to Back to the Futon of meeting their warranty claims in 2020 was $379,168 . Based on recent claims history, Back to the Futon revises the 2020 warranty provision to 9% of Calculate the ending provision for warranty payable at the end of 2020. Please do not round intermedury answers. Hound your finanswer to the nearest dollar. Do not use signs in your final
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