This is Lemon Company's first year of business and it sells smart phones for $400 that cost $200. They come with a lifetime warranty and average repair cost is $70. Lemon has made $8,900,000 in sales this year and 12,250 units have been returned. Lemon estimates that 3% of units will fail. The year-end balance sheet should show a liability for warranty of: Multiple Choice $500,000 $700,000 $800,000 Some other amount $600,000

This is Lemon Company's first year of business and it sells smart phones for $400 that cost $200. They come with a lifetime warranty and average repair cost is $70. Lemon has made $8,900,000 in sales this year and 12,250 units have been returned. Lemon estimates that 3% of units will fail. The year-end balance sheet should show a liability for warranty of: Multiple Choice $500,000 $700,000 $800,000 Some other amount $600,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 9MC: Blake Department Store sells television sets with one-year warranties that cover repair and...

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