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Igloo Company estimates its annual warranty expense as 3% of annual net sales. The following data relate to the calendar year 2021: Net sales $1,500,

Igloo Company estimates its annual warranty expense as 3% of annual net sales. The
following data relate to the calendar year 2021:
Net sales $1,500,000
Warranty liability account
Balance, Dec. 31, 2020 $10,000 debit before adjustment
Balance, Dec. 31, 2021 20,000 credit after adjustment
Which one of the following entries was made to record the 2021 estimated warranty expense? image text in transcribed
points Save Answer Igloo Company estimates its annual warranty expense as 3% of annual net sales. The following data relate to the calendar year 2021: Net sales $1,500,000 Warranty liability account Balance, Dec. 31, 2020 $10,000 debit before adjustment Balance, Dec. 31, 2021 20,000 credit after adjustment Which one of the following entries was made to record the 2021 estimated warranty expense? O Warranty Expense 45,000 Retained Earnings (prior-period adjustment) 7,500 Warranty Liability 37,500 o Warranty Expense 37,500 Retained Earnings (prior-period adjustment) 7,500 Warranty Liability 45,000 o Warranty Expense 30,000 Warranty Liability 30,000 o Warranty Expense 45,000 Warranty Liability 45,000

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