Question
Carpenter Inc. had a balance of $82,000 in its QA liability account as of December 31, 2020. In 2021, Carpenter's warranty expenses paid were $447,000.
Carpenter Inc. had a balance of $82,000 in its QA liability account as of December 31, 2020. In 2021, Carpenter's warranty expenses paid were $447,000. Your warranty expense is calculated as 1% of sales. Sales in 2021 were $40.2 million.
What was the balance in the guarantee liability account as of December 31, 2021?
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
10th edition
1260481956, 1260310175, 978-1260481952
