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
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 6P
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