Question:Carpy Corp. sells products with included warranties and
estimates warranty costs to be 2% of selling...
Question
Carpy Corp. sells products with included warranties and
estimates warranty costs to be 2% of selling...
Carpy Corp. sells products with included warranties and
estimates warranty costs to be 2% of selling price. At January 1,
Carpy had a balance of $480 in its warranty liability
account.
During the year, Carpy sold $25,000 worth of products costing
$13,000, on account, and made $510 of repairs under warranty (paid
in cash).
Journalize Carpy’s sales for the
year, including warranties.
Journalize Carpy’s warranty repairs
for the year.
What is the balance in Carpy’s
warranty liability account at December 31?