Carpet Company had a balance of P800,000 in the warranty liability account on December 31, 2020. The warranty expenditures totaled P2,500,000 for 2021. The warranty expense is calculated at 6% of sales. Sales amounted to P40,000,000 for 2021. What was the balance in the warranty liability account on December 31, 2021?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Carpet Company had a balance of P800,000 in the warranty liability account on December 31, 2020. The warranty expenditures totaled P2,500,000 for 2021. The warranty expense is calculated at 6% of sales. Sales amounted to P40,000,000 for 2021. What was the balance in the warranty liability account on December 31, 2021?

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