Question
Western Company estimates warranty expense as 5% of sales. On January 1, 2016 warranties payable was $20,000, and the December 31 liability for the warranty
Western Company estimates warranty expense as 5% of sales. On January 1, 2016 warranties payable was $20,000, and the December 31 liability for the warranty was $22,000. During the year Western recorded sales of $300,000. The amount paid by Western during the year to meet its warranty obligations was:
| A. | $30,000 | |
| B. | $12,000 | |
| C. | $15,000 | |
| D. | $13,000 |
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Financial Accounting An Integrated Approach
Authors: Michael Gibbins
6th Edition
0176407251, 978-0176407254
