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Warranty Expense in 2021? On January 2, 2019, Athletics Company introduced a new line of products that carry a three-year warranty against factory defects. Estimated
Warranty Expense in 2021?
On January 2, 2019, Athletics Company introduced a new line of products that carry a three-year warranty against factory defects. Estimated warranty costs related to peso sales are as follows: 1% of sales in the year of sale, 2% in the year after sales and 3% in the second year after sale. Sales and actual warranty expenditures for the period 2019 to 2021 were as follows: 2019 2020 2021 Sales 200.000 500.000 700.000 1.400.000 Actual warranty Expenditures 1.500 7,500 22,500 31,500
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