Question
Beasty Rabbit Corporation manufactures miniature trampolines. The company offers a one-year warranty on all trampolines. During the year, the company recorded net sales of $279,860.
Beasty Rabbit Corporation manufactures miniature trampolines. The company offers a one-year warranty on all trampolines. During the year, the company recorded net sales of $279,860. Historically, about 2% of all sales are returned under warranty and the cost of repairing and/or replacing goods under warranty is about 50% of retail value. Assume that at the start of the year Beasty Rabbit balance sheet included an accrued warranty liability of $1,453 million and at the end of the year, the accrued warranty liability balance was $1,854 million.
What was Beasty Rabbit Corporations warranty expense for the current year?
*round your answer to the nearest $1
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