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Z limited is a dealer in electronic products. The sales contract provides for one year warranty and product quality guarantee. During the year ended 31st

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Z limited is a dealer in electronic products. The sales contract provides for one year warranty and product quality guarantee. During the year ended 31st December 2011 the company sold 10,000 units. The management estimates the following; t Required; i. Compute the amount that should be set aside to cater for the product service warranty ii. During the year ended 31/12/2012 the company estimates to pay sh 800,000 and forward a provision of sh760,000. Prepare the provision account

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