During August, Boxer Company sold $362,000 in merchandise that has a one-year warranty. Based on past experience, warranty expenses are estimated to be about 5% of total sales revenue. Boxer used $8,800 in parts for warranty repairs on merchandise that customers returned. Which of the following statements is correct about the estimated warranty expense for the month? No recording is needed because the warranty expense is estimated. O Boxer's estimated warranty Expense increased by $18,100 this month. O Boxer's estimated warranty liabilities had no change this month. O Boxer's estimated warranty expense decreased by $8,800 this month.

During August, Boxer Company sold $362,000 in merchandise that has a one-year warranty. Based on past experience, warranty expenses are estimated to be about 5% of total sales revenue. Boxer used $8,800 in parts for warranty repairs on merchandise that customers returned. Which of the following statements is correct about the estimated warranty expense for the month? No recording is needed because the warranty expense is estimated. O Boxer's estimated warranty Expense increased by $18,100 this month. O Boxer's estimated warranty liabilities had no change this month. O Boxer's estimated warranty expense decreased by $8,800 this month.

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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