Solution-What is the estimated warranty liability at the end

What is the estimated warranty liability at the end

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Reference no: EM132795911

Question - Excom manufactures high-end whole home electronic systems. The company provides a two-year warranty for all products sold. The company estimates that the warranty costs related to dollar sales are 2% for the first year of warranty and 5% for the second year of warranty. Sales and actual warranty expenditures for 2018 and 2019 are presented below:

	2018	2019
Sales	$600,000	$800,000
Actual Warranty Exp	30,000	40,000

Required - What is the estimated warranty liability at the end of 2019?

Reference no: EM132795911

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What is the estimated warranty liability at the end

Reference no: EM132795911

Reference no: EM132795911

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