Das Medical introduced a new implant that carries a five- year warranty against manufacturer's defects. Based on industry experience with similar product introductions, warranty costs are expected to approximate 1% of sales. Sales were $14 million and actual warranty expenditures were $26,500 for the first year of selling the product. Complete the following T- account to determine the amount (if any) Das should report as a liability at the end of the year. Note: Enter your answers in whole dollars.

Das Medical introduced a new implant that carries a five- year warranty against manufacturer's defects. Based on industry experience with similar product introductions, warranty costs are expected to approximate 1% of sales. Sales were $14 million and actual warranty expenditures were $26,500 for the first year of selling the product. Complete the following T- account to determine the amount (if any) Das should report as a liability at the end of the year. Note: Enter your answers in whole dollars.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 10E

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