Question
Carpenter Inc. had a balance of $95,000 in its quality-assurance warranty liability account as of December 31, 2020. In 2021, Carpenter's warranty expenditures paid were
Carpenter Inc. had a balance of $95,000 in its quality-assurance warranty liability account as of December 31, 2020. In 2021, Carpenter's warranty expenditures paid were $460,000. Its warranty expense is calculated as 1% of sales. Sales in 2021 were $41.5 million. What was the balance in the warranty liability account as of December 31, 2021?
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Horngrens Financial & Managerial Accounting, The Managerial Chapters
Authors: Tracie Miller Nobles, Brenda Mattison
7th Edition
0136503616, 9780136503613
