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willis Company introduced a new product carrying a two-year warranty against defects. Estimated warranty costs over the two-year period are 4% of sales. 20x1 sales
willis Company introduced a new product carrying a two-year warranty against defects. Estimated warranty costs over the two-year period are 4% of sales. 20x1 sales = $1,000,000. 20x2 sales = $1,200,000. If the actual expenses incurred in the year 20x1 total $19,000, and the actual expenses incurred in 20x2 total $39,500 what is the amount in the estimated warranty liability account as of 12/31/x2.
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