1. Determine the estimated warranty liability on December 31, 2022.2. Analyze the estimated warranty liability account to ascertain if adjustment is necessary. The sales and warranty repairs are made evenly during the year. In 2021, Beginner Pottery Company began selling a new calculator that carried a two-year warranty against defects.Beginner Pottery projected the estimated warranty cost (as a percent of sales) as follows:First year of warrantySecond year of warranty4%10%Sales and actual warranty repairs were:20229,000,000560,0002021Sales5,000,000200,000Actual warranty repairs

Answer: We are given First year warranty = 4% Second year warranty = 10%

1. Determine the estimated warranty liability on December 31, 2022. 2. Analyze the estimated warranty liability account to ascertain if adjustment is necessary. The sales and warranty repairs are made evenly during the year.

1. Determine the estimated warranty liability on December 31, 2022. 2. Analyze the estimated warranty liability account to ascertain if adjustment is necessary. The sales and warranty repairs are made evenly during the year.

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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