What amount of warranty expense will appear

Reference no: EM13136859

ABC, Inc., provides warranties for many of its products. The January 1, 2011, balance of the Estimated Warranty Liability account was $28,500. Based on an analysis of warranty claims during the past several years, this year's warranty provision was estimated to be 0.2 percent of sales. During 2011, the actual costs of servicing products under warranty were $25,000, and sales were $5,300,000.
(a.) What amount of Warranty Expense will appear on the income statement for 2011?
(b.) What amount will be reported in the Estimated Warranty Liability account on the December 31, 2011 balance sheet?

Reference no: EM13136859

Questions Cloud

Multinational corporations : Many Multinational Corporations (MNC's) and Non-Governmental Organisations (NGO's) face significant ethical and social responsibility dilemmas. Discuss the variety of strategies and business practices that MNC's and NGO's may utilise in order to maxi..

Program evaluation stipulations : Imagine your evaluation findings are not very well received by an agency and its administrators. Discuss what you would do so there might be a "reinterpretation."

What would be the expected cost of goods sold : Gemstone Corporation has a sales budget for next month of $600,000. Cost of goods sold is expected to be 30 percent of sales. All goods are purchased in the month used and paid for in the month following purchase.

Show analyses using three statistics yields same outcomes : The following indices: z, t, F, r, Chi square. Using the data below, show that analyses using each of the three statistics yields the same or similar outcomes.

What amount of warranty expense will appear : What amount will be reported in the Estimated Warranty Liability account on the December 31, 2011 balance sheet?

Relevance of program evaluation : What are the three most important things you learned as part of conducting a program evaluation? Your selection can focus on any aspect of the evaluation process creating a learning culture, methodological issues

Identify decisions that managers like choi : Identify decisions that managers like Choi must make in applying depreciation methods.

How anthropological research can be applied to many fields : how anthropological research can be applied to many different fields. If you were an applied anthropologist, what types of projects would you want to work on? How do you see your choice of project relating to the goals of applied anthropology?

What is the ph of the solution : A solution of acid was found to have a hydrogen ion concentration of 0.03 mol dm-3 what is the pH of the solution?

User Account

All Pages