Pink Company had a warranty liability of P350,000 at the beginning of current year and P310,000 at end of current year. Warranty expense is based on 4% of sales which amounted to P50,000,000 for the year. What amount of warranty expenditures was incurred for the current year? 2,040,000 b. 1,900,000 c. 2,000,000 d.
Pink Company had a warranty liability of P350,000 at the beginning of current year and P310,000 at end of current year. Warranty expense is based on 4% of sales which amounted to P50,000,000 for the year. What amount of warranty expenditures was incurred for the current year? 2,040,000 b. 1,900,000 c. 2,000,000 d.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Problem 3-9 (IAA) 1
Pink Company had a warranty liability of P350,000 at the
beginning of current year and P310,000 at end of current
year. Warranty expense is based on 4% of sales which
amounted to P50,000,000 for the year.
What amount of warranty expenditures was incurred for the
current year?
Ta 2,040,000
b. 1,900,000
c. 2,000,000
d.
Problem 3-10 (IAA)
halance of P800,000 in the warranty
The warranty
d a
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