1) In January 2020, Simon Corporation began selling a new line of products that carry a two-year warran against defects. Sales and actual warranty expenditures for 2020 and 2021 are presented below: 2020 Php 600,000 Php 800,000 20,000 2021 Sales Actual warranty expenditures 40,000 The warranty liability as of 31 December 2020 and 31 December 2021 are Php 22,000 and Php 38,000, respectively. How much is the warranty expense in 2021?
1) In January 2020, Simon Corporation began selling a new line of products that carry a two-year warran against defects. Sales and actual warranty expenditures for 2020 and 2021 are presented below: 2020 Php 600,000 Php 800,000 20,000 2021 Sales Actual warranty expenditures 40,000 The warranty liability as of 31 December 2020 and 31 December 2021 are Php 22,000 and Php 38,000, respectively. How much is the warranty expense in 2021?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:1) In January 2020, Simon Corporation began selling a new line of products that carry a two-year warranty
against defects. Sales and actual warranty expenditures for 2020 and 2021 are presented below:
2020
Php 600,000 Php 800,000
20,000
2021
Sales
Actual warranty expenditures
40,000
The warranty liability as of 31 December 2020 and 31 December 2021 are Php 22,000 and Php
38,000, respectively. How much is the warranty expense in 2021?
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