Current Attempt in Progress Sunland Company offers a five-year warranty on its products. Sunland previously estimated warranty costs to be 3% of sales but in 2025 revised this estimate to 1% due to process and quality control improvements. Sunland reported warranty costs of $80700 on $2690000 of sales in 2023 and $95700 on $3190000 in 2024. Sales revenue for 2025 was $5190000. What is Sunland Company's warranty expense for 2025? O $176400 $51900 $0 $155700

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Current Attempt in Progress
Sunland Company offers a five-year warranty on its products. Sunland previously estimated warranty costs to be 3% of sales but in
2025 revised this estimate to 1% due to process and quality control improvements. Sunland reported warranty costs of $80700 on
$2690000 of sales in 2023 and $95700 on $3190000 in 2024. Sales revenue for 2025 was $5190000.
What is Sunland Company's warranty expense for 2025?
O $176400
$51900
$0
$155700
Transcribed Image Text:Current Attempt in Progress Sunland Company offers a five-year warranty on its products. Sunland previously estimated warranty costs to be 3% of sales but in 2025 revised this estimate to 1% due to process and quality control improvements. Sunland reported warranty costs of $80700 on $2690000 of sales in 2023 and $95700 on $3190000 in 2024. Sales revenue for 2025 was $5190000. What is Sunland Company's warranty expense for 2025? O $176400 $51900 $0 $155700
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