Question
Blossom Company offers a five-year warranty on its products. Blossom previously estimated warranty costs to be 3% of sales but in 2025 revised this
Blossom Company offers a five-year warranty on its products. Blossom previously estimated warranty costs to be 3% of sales but in 2025 revised this estimate to 1% due to process and quality control improvements. Blossom reported warranty costs of $78600 on $2620000 of sales in 2023 and $93600 on $3120000 in 2024. Sales revenue for 2025 was $5120000. What is Blossom Company's warranty expense for 2025? $0 O $51200 O $172200 O $153600
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Financial Accounting An Introduction to Concepts, Methods and Uses
Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis
14th edition
978-1111823450, 1-133-36617-1 , 1111823456, 978-1-133-3661, 978-1133591023
