Relay Company estimated that annual warranty expense at 2% of annual net sales. The net sales for 2021 amounted to P4,000,000. On January 1, 2021, the warranty liability was P60,000 and the warranty payments during 2021 totaled P50,000. What is the warranty liability on December 31, 2021? P10,000 P90,000 O P70,000 O P80,000

Relay Company estimated that annual warranty expense at 2% of annual net sales. The net sales for 2021 amounted to P4,000,000. On January 1, 2021, the warranty liability was P60,000 and the warranty payments during 2021 totaled P50,000. What is the warranty liability on December 31, 2021? P10,000 P90,000 O P70,000 O P80,000

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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