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Carpenter Inc. had a balance of $80,000 in its quality-assurance warranty liability account as of December 31, 2020. In 2021, Carpenter's warranty expenditures paid
Carpenter Inc. had a balance of $80,000 in its quality-assurance warranty liability account as of December 31, 2020. In 2021, Carpenter's warranty expenditures paid were $445,000. Its warranty expense is calculated as 1% of sales. Sales in 2021 were $40 million. What was the balance in the warranty liability account as of December 31, 2021? Multiple Choice $480,000. $125,000. $35,000. $425,000.
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International Accounting
Authors: Frederick D. Choi, Gary K. Meek
6th edition
131588141, 978-0131588141
