Question
During 2017, Blevert Co introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on industry experience warranty couts
During 2017, Blevert Co introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on industry experience warranty couts are muted at 2% of sales in the year of 25% the year after sale, and 7% in the second year after sale Sales and actual warranty expendhures for the test three-year period was follows Sales 2017 $100,000 2018 1,700,000 2019 2.000.000 $3.800,000 Actual Warranty Expenditures 3,000 21.000 100000 $124,000 What amount should Blavert report as a lability at December 31, 20187 A $192.000 $204,000 x $183.000 $213,000
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