A company sells computers for $1,000 each. Each computer has a two-year warranty that covers replacement of defective parts. It is estimated that 2% of all computers sold will be returned under the warranty with an average cost of $174 each. During November, the company sold 42,000 computers;. 520 computers were serviced under the warranty during November at a total cost of $67,000. The balance in the Estimated Warranty Liability account at November 1 was $35,000. What is the company's warranty expense for the month of November? Multiple Choice O $73,080 $90,480 $32,000 $146,160
A company sells computers for $1,000 each. Each computer has a two-year warranty that covers replacement of defective parts. It is estimated that 2% of all computers sold will be returned under the warranty with an average cost of $174 each. During November, the company sold 42,000 computers;. 520 computers were serviced under the warranty during November at a total cost of $67,000. The balance in the Estimated Warranty Liability account at November 1 was $35,000. What is the company's warranty expense for the month of November? Multiple Choice O $73,080 $90,480 $32,000 $146,160
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A company sells computers for $1,000 each. Each computer has a two-year warranty
that covers replacement of defective parts. It is estimated that 2% of all computers sold
will be returned under the warranty with an average cost of $174 each. During
November, the company sold 42,000 computers;. 520 computers were serviced under
the warranty during November at a total cost of $67,000. The balance in the Estimated
Warranty Liability account at November 1 was $35,000. What is the company's warranty
expense for the month of November?
Multiple Choice
O
O
O
$73,080
$90,480
$32,000
$146,160
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