A company estimates the cost of products warranties to be 3% of sales. The beginning balance in Estimated Warranty Liability account is $15,000. Sales for the period was $795,000. During the period, $32,600 was actually paid for warranty related costs. What is the ending balance in the Warranty Liability account?
| Click Here to View All Chapter 8 Problems at Once | View | ||
| 1 | Liability Classification | Easy | |
| 2 |
Contingent Liabilities
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Moderate | |
| 3 | Contingent Liabilities - Warranties | Moderate | |
| 4 | Purchasing with a Non-Interest Bearing Note | Moderate |
| 1 | Interest Bearing Notes | 8:26 | |
| 2 | Non-interest Bearing Notes | 6:16 | |
| 3 | Contingencies | 5:58 | |
| 4 | What is Present Value | 8:15 | |
| 5 | Simple vs Compound | 14:41 | |
| 6 | PV of a Lump Sum | 4:39 | |
| 7 | PV of a Lump Sum | 6:09 | |
| 8 | Ordinary Annuity | 7:16 | |
| 9 | Purchasing with an Annuity | 4:31 | |
| 10 | Finding the Payment | 6:07 |