Solution-What amount should be reported as warranty expense

What amount should be reported as warranty expense

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Reference no: EM133138475

Question - Purple Company sold a product under a two-year warranty. The estimated cost of warranty repairs is 3% of net sales. During the first two years in business, the entity made the following sales and incurred the following warranty repair costs:

	2022	2023
Net sales	2,500,000	3,000,000
Total repair costs incurred	45,000	50,000

Required - What amount should be reported as warranty expense for 2023?

Reference no: EM133138475

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What amount should be reported as warranty expense

Reference no: EM133138475

Reference no: EM133138475

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