.11 Mobiles Co sells goods with a one year warranty under which customers are covered for any defect that/becomes apparent within a year of purchase. In calendar year 20X4, Mobiles Co sold 100,000 units.The company expects warranty claims for 5% of units sold. Half of these claims will be for a majordefect, with an average claim value of $50. The other half of these claims will be for a minor defect,defect, with an average claim value of $50. The other half of these claims will be for a minor delee,with an average claim value of $10.What amount should Mobiles Co include as a provision in the statement of financial position for the yearended 31 December 20X4?$125,000$ 25,000$300,000D $150,000AC

In accounting, the term 'provision' defines to make an estimation of amount keep aside for future…

12.11 Mobiles Co sells goods with a one year warranty under which customers are covered for any defect that /becomes apparent within a year of purchase. In calendar year 20X4, Mobiles Co sold 100,000 units. The company expects warranty claims for 5% of units sold Half of these claims will be for a major derect, with an average claim value of $50, The other hallf of these clainms will be for a minor defect, with an average claim value of $10. What amount should Mobiles Co include as a provision in the statement of financial position for the year ended 31 December 20X4? $125,000 $ 25,000 $300,000 $150,000 ABCD

12.11 Mobiles Co sells goods with a one year warranty under which customers are covered for any defect that /becomes apparent within a year of purchase. In calendar year 20X4, Mobiles Co sold 100,000 units. The company expects warranty claims for 5% of units sold Half of these claims will be for a major derect, with an average claim value of $50, The other hallf of these clainms will be for a minor defect, with an average claim value of $10. What amount should Mobiles Co include as a provision in the statement of financial position for the year ended 31 December 20X4? $125,000 $ 25,000 $300,000 $150,000 ABCD

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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