Question
Carpenter Inc. had a balance of $800,000 in its warranty liability account as of December 31, 2012. In 2013, Carpenter's warranty expenditures were $2,500,000.The warranty
Carpenter Inc. had a balance of $800,000 in its
warranty liability account as of December 31, 2012.
In 2013, Carpenter's warranty expenditures were
$2,500,000.The warranty is calculated as 6%
of sales. Sales in 2013 were $40 million. What was
the balance in the warranty liability account as of
December 31, 2013?
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Auditing Cases An Interactive Learning Approach
Authors: Mark S Beasley, Frank A. Buckless, Steven M. Glover, Douglas F Prawitt
7th Edition
0134421825, 9780134421827
