Question
Nutramint Inc. had a balance of $175,000 in its warranty liability account as of December 31, 2018. In 2019, Nutramint's warranty expenditures were $125,000. Its
| Nutramint Inc. had a balance of $175,000 in its warranty liability account as of December 31, 2018. In 2019, Nutramint's warranty expenditures were $125,000. Its warranty expense is calculated as 1% of sales, and Sales in 2019 were $10 million. What was the balance in the warranty liability account as of December 31, 2019? |
| $175,000. |
| $100,000. |
| $125,000. |
| $150,000. |
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Real Estate Accounting A Practitioners Guide
Authors: Steven M. Bragg
3rd Edition
164221034X, 978-1642210347
