The selling price of the Appliances Company's units is P 80,000 each. The buyers are provided with a 2-year warranty that is expected to cost the company are provided with a 2-year warranty that is expected to cost the company P 2,000 per unit in the year of sale and P 6,000 per unit in the year following the sale. The company sold 80 units in2019 and 100 units in the 2020. Actual payments for warranty claims were P 80,000 and P 520,000 in 2019 and 2020, respectively. How much be the warranty expense for 2019 and 2020 respectively? * A.P 200,000 and P 600,000 B P 640,000 and P 800,000 C P 800,000 and P 840,000 D P 680,000 and P 280,000
The selling price of the Appliances Company's units is P 80,000 each. The buyers are provided with a 2-year warranty that is expected to cost the company are provided with a 2-year warranty that is expected to cost the company P 2,000 per unit in the year of sale and P 6,000 per unit in the year following the sale. The company sold 80 units in2019 and 100 units in the 2020. Actual payments for warranty claims were P 80,000 and P 520,000 in 2019 and 2020, respectively. How much be the warranty expense for 2019 and 2020 respectively? * A.P 200,000 and P 600,000 B P 640,000 and P 800,000 C P 800,000 and P 840,000 D P 680,000 and P 280,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The selling price of the Appliances Company's units is P 80,000 each. The buyers are provided with a 2-year warranty that is expected to cost the company are provided with a 2-year warranty that is expected to cost the company P 2,000 per unit in the year of sale and P 6,000 per unit in the year following the sale. The company sold 80 units in2019 and 100 units in the 2020. Actual payments for warranty claims were P 80,000 and P 520,000 in 2019 and 2020, respectively. How much be the warranty expense for 2019 and 2020 respectively? *
A.P 200,000 and P 600,000
B P 640,000 and P 800,000
C P 800,000 and P 840,000
D P 680,000 and P 280,000
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