Question
I need help! I cannot figure out the product waranty payable amount. Accrued Product Warranty Ford Motor Company disclosed the following estimated product warranty payable
I need help! I cannot figure out the product waranty payable amount.
Accrued Product Warranty
Ford Motor Companydisclosed the following estimated product warranty payable for two recent years.
Ford's sales in its automotive sector were $128,168 million in Year 2 and $119,280 million in Year 1. Assume that the total paid on warranty claims during Year 2 was $2,799 million.
a. Illustrate the effects on the accounts and financial statements for the Year 2 product warranty expense. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.
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