Question
Jeep dealership reported teh following information. Teh jeeps has a standard 2 year warranty, and teh company offers an extended warranty. Everyone bought teh extended
Jeep dealership reported teh following information. Teh jeeps has a standard 2 year warranty, and teh company offers an extended warranty. Everyone bought teh extended warranty at teh time of sale. Sales price 500,000 Cost of goods sold 350,000 Extended warranty sales price 31,000 Estimated costs for warranty Standard warranty 5,000 Extended warranty 20,000 Actual cost of warranty work performed Warranty cost in 20X1 = 3,000 Warranty cost in 20X2 = 3,000 Warranty cost in 20X3 = 13,000 Warranty cost in 20X4 = 14,000 Assuming no taxes, wat is the net income or (loss), revenues less expenses, recognized in 20X4 from dis sale?
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