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Bold Company estimates its annual warranty expense at 2% of annual net sales. The following data are available: Net sales $ 4,000,000 Warranty liability: December
| Bold Company estimates its annual warranty expense at 2% of annual net sales. The following | ||||||||||||
| data are available: | ||||||||||||
| Net sales | $ | 4,000,000 | ||||||||||
| Warranty liability: | ||||||||||||
| December 31, 2017 | 60,000 | credit | ||||||||||
| Warranty payments during 2018 | 50,000 | debit | ||||||||||
| Required: | ||||||||||||
| How much should be the warranty liability on December 31, 2018 after recording the 2014 warranty | ||||||||||||
| expense? | ||||||||||||
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Financial And Managerial Accounting Working Papers Volume 1
Authors: Belverd E. Needles
6th Edition
0618102337, 978-0618102334
