Oriole Navigation began operations in 2020 and provides a one-year warranty on the products it sells. It estimates that 19600 of the 407000 units sold in 2020 will be returned for repairs and that these repairs will cost $9 per unit. The cost of repairing 16100 units presented for service in 2020 was $127800. Oriole estimates that the remaining estimated units will be presented for repair in the following year. Oriole will report O warranty expense of $127800 for 2020. O no warranty obligation on December 31, 2020, since this is only a contingent liability. O warranty liability of $176400 on December 31, 2020. O warranty liability of $31500 on December 31, 2020.

Oriole Navigation began operations in 2020 and provides a one-year warranty on the products it sells. It estimates that 19600 of the 407000 units sold in 2020 will be returned for repairs and that these repairs will cost $9 per unit. The cost of repairing 16100 units presented for service in 2020 was $127800. Oriole estimates that the remaining estimated units will be presented for repair in the following year. Oriole will report O warranty expense of $127800 for 2020. O no warranty obligation on December 31, 2020, since this is only a contingent liability. O warranty liability of $176400 on December 31, 2020. O warranty liability of $31500 on December 31, 2020.

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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