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

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