A company provides a warranty on its products that it sells to customers. The warranty liability account had $1,200 balance on April 1. The company had sales of $67,000 in April and estimated warranty repairs at 3% of sales. During the month, the company actually paid out $2,400 for warranty repairs.
Determine the April 30 balance in the estimated warranty liability account.
2. Contingent Liabilities Start Chapter 10| Click Here to View All Chapter 9 Problems at Once | View | ||
| 1 | Liability Classification | Easy | |
| 2 | Contingent Liabilities | Moderate | |
| 3 |
Contingent Liabilities - Warranties
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Moderate |
| 1 | Interest Bearing Notes | 8:26 | |
| 2 | Non-interest Bearing Notes | 6:16 | |
| 3 | Contingencies | 5:58 |