Question 6 fof 10) Save&Ext; Subma Time Note: This question will not be automati

Question

Question 6 fof 10) Save&Ext; Subma Time Note: This question will not be automatically graded. t will be sent to your instructor for review 200 points TB ES Qu. 7-41 Claudette, Inc., provides warranties for many... Claudete, Inc. provides warranties for many of fts products. The January t,2017, balance of the Estimated Warranty Lisbility accoun several years, this yeers warranty provision was estimated t $77000 Based on an analysis of warrenty claims daring the past o be 0.8 percent of seles During 2012, the actual costs of servicing products under waranty were $102,000, and sales were $10,600000 a) What amount of Werranty Expense will appear on the income statement for 2017 b.) What amount will be reported in the Estimated Warranty Liebility account on the December 31, 2017, balance sheot? MacBook Air 8 8 0 3 4 5 6

Explanation / Answer

a Warranty expense = 10600000*0.8%= $84800 b Estimated Warranty Liability (Jan 1, 2017) 77000 Less: Actual Warranty costs during 2017 102000 Add: Warranty expense accrued during 2017 84800 Estimated Warranty Liability (Dec 31, 2017) 59800

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