The beginning warranty liability was $25,000. Sales of $5,000,000 were made, and 1% of sales is the estimated warranty cost. The ending balance of the warranty liability was $35,000 (credit). How much warranty work was performed?

The beginning warranty liability was $25,000. Sales of $5,000,000 were made, and 1% of sales is the estimated warranty cost. The ending balance of the warranty liability was $35,000 (credit). How much warranty work was performed?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 12Q: A companys sales for January are $250,000. If the company projects warranty obligations to be 5% of...

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