Heinrich Tire Company began offering a three-year warranty on its products at the beginning of 2022. The warranty program was expected to cost Heinrich 5% of net sales. Net sales made under warranty in 2022 were $192 million. Twelve percent of the units sold were returned in 2022 and repaired or replaced at a cost of $4.40 million. How much warranty expense should Heinrich report in its 2022 Income statement? Multiple Choice OOO O $28.80 million. $4.40 million. $13.00 million. $9.60 million

Heinrich Tire Company began offering a three-year warranty on its products at the beginning of 2022. The warranty program was expected to cost Heinrich 5% of net sales. Net sales made under warranty in 2022 were $192 million. Twelve percent of the units sold were returned in 2022 and repaired or replaced at a cost of $4.40 million. How much warranty expense should Heinrich report in its 2022 Income statement? Multiple Choice OOO O $28.80 million. $4.40 million. $13.00 million. $9.60 million

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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