Problem 3-6 (IAA)Hanna Company reported warranty expense of P1,900,000for the current year. The warranty liability account increasedby P200,000 during the current year.What amount should be reported for actual warrantyexpenditures during the current year?a. 1,900,000b. 1,700,000c. 2,100,000d.0Problem 3-7 (IAA)Pink Company had a warranty liability of P350,000 at thebeginning of current year and P310,000 at end of currentyear. Warranty expense was based on 4% of sales whichamounted to P50,000,000 for the current year.What amount of warranty expenditures was incurred for thecurrent year?a. 2,040,000b. 1,900,000c. 2,000,000d.0Problem 3-8 (IAA)Carpet Company had a balance of P800,000 in the estimatedwarranty liability account on December 31, 2022. Thewarranty expenditures totaled P2,500,000 for 2023.The warranty expense was calculated at 6% of sales. Salesamounted to P40,000,000 for 2023.What amount should be reported as estimated warrantyliability on December 31, 2023?a. 2,400,000b. 3,200,000C.d.700,000800,000

Introduction:- Warranty expense is an actual cost that a business expend to repair the goods sold.…

Hanna Company reported warranty expense of P1,900,000 for the current year. The warranty liability account increased by P200,000 during the current year. What amount should be reported for actual warranty expenditures during the current year? a. 1,900,000 b. 1,700,000 c. 2,100,000

Hanna Company reported warranty expense of P1,900,000 for the current year. The warranty liability account increased by P200,000 during the current year. What amount should be reported for actual warranty expenditures during the current year? a. 1,900,000 b. 1,700,000 c. 2,100,000

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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Subject: accounting