In 2009, Slimon Corp began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows: Sales and actual warranty expenditures for 2009 and 2010 are present below: 2009 Sales - $300,000 Actual warranty expenditures for 2009 - $10,000 Estimated total warranty expenditures for 2 years: $21,000 2010 Sales - $400,000 Actual warranty expenditures for 2010 - $20,000 Estimated total warranty expenditures for 2 years: $28,000 What is the estimated warranty liability at the end of 2010? $19,000 $29.000 $49,000
In 2009, Slimon Corp began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows: Sales and actual warranty expenditures for 2009 and 2010 are present below: 2009 Sales - $300,000 Actual warranty expenditures for 2009 - $10,000 Estimated total warranty expenditures for 2 years: $21,000 2010 Sales - $400,000 Actual warranty expenditures for 2010 - $20,000 Estimated total warranty expenditures for 2 years: $28,000 What is the estimated warranty liability at the end of 2010? $19,000 $29.000 $49,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 10E
Related questions
Question
![In 2009, Slimon Corp began selling a new line of products that carry a two-year warranty
against defects. Based upon past experience with other products, the estimated warranty
costs related to dollar sales are as follows:
Sales and actual warranty expenditures for 2009 and 2010 are present below:
2009
Sales - $300,000
Actual warranty expenditures for 2009 - $10,000
Estimated total warranty expenditures for 2 years: $21,000
2010
Sales - $400,000
Actual warranty expenditures for 2010 - $20,000
Estimated total warranty expenditures for 2 years: $28,000
What is the estimated warranty liability at the end of 2010?
$19,000
$29.000
$49,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5bd9fd3d-4f4d-4003-91c9-9c50e6822cb0%2F0e5bbddd-97b8-4e1a-b8c3-08873ce800a1%2Fx3axw0a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In 2009, Slimon Corp began selling a new line of products that carry a two-year warranty
against defects. Based upon past experience with other products, the estimated warranty
costs related to dollar sales are as follows:
Sales and actual warranty expenditures for 2009 and 2010 are present below:
2009
Sales - $300,000
Actual warranty expenditures for 2009 - $10,000
Estimated total warranty expenditures for 2 years: $21,000
2010
Sales - $400,000
Actual warranty expenditures for 2010 - $20,000
Estimated total warranty expenditures for 2 years: $28,000
What is the estimated warranty liability at the end of 2010?
$19,000
$29.000
$49,000
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