Clarity Co. has a year-end of December 31. The company estimates its annual warranty expense to be 2% of annual sales. On December 31, 2020, the warranty liability account had a credit balance of $7,200. In 2021, Clarity made $460,000 in sales and incurred $10,350 in warranty costs. What is the ending balance in the warranty liability account on December 31, 2021, after adjusting entries have been made? Question 11 options:
Clarity Co. has a year-end of December 31. The company estimates its annual warranty expense to be 2% of annual sales. On December 31, 2020, the warranty liability account had a credit balance of $7,200. In 2021, Clarity made $460,000 in sales and incurred $10,350 in warranty costs. What is the ending balance in the warranty liability account on December 31, 2021, after adjusting entries have been made? Question 11 options:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Clarity Co. has a year-end of December 31. The company estimates its annual warranty expense to be 2% of annual sales. On December 31, 2020, the warranty liability account had a credit balance of $7,200. In 2021, Clarity made $460,000 in sales and incurred $10,350 in warranty costs. What is the ending balance in the warranty liability account on December 31, 2021, after
Question 11 options:
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$16,400 |
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$9,200 |
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$6,050 |
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$8,350 |
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