During 2011, Vien Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 3% in the year after sale, and 4% in the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows: www Sales 2011 2012 2013 Total P 600,000 1,500,000 2.100,000 4,200,000 Actual Warranty Expenditures P' 9,000 65,000 135,000 P 209,000 What amount should Vien Co. report as a liability at December 31, 2013? ww

During 2011, Vien Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 3% in the year after sale, and 4% in the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows: www Sales 2011 2012 2013 Total P 600,000 1,500,000 2.100,000 4,200,000 Actual Warranty Expenditures P' 9,000 65,000 135,000 P 209,000 What amount should Vien Co. report as a liability at December 31, 2013? ww

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Description: A.54,000B.0C.12,000D.169,000 During 2011, Vien Co. introduced a new line of machines that carry a three-yearwarranty against manufacturer's defects. Based on industry experience, warranty costsare estimated at 2% of sales in the year of sale, 3% in t

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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