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In 2018, Pollard Corporation began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products,
In 2018, Pollard Corporation began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows: First year of warranty 3% 5% Second year of warranty Sales and actual warranty expenditures for 2018 and 2019 are presented below: 2019 2018 $750,000 $1,050,000 45,000 Sales Actual warranty expenditures 75,000 What is the estimated warranty liability at the end of 2019? O $24,000 O $96,000 O $144,000 O $30,000
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