*see attachedWhat amount should RIS report as a liability at December 31, 2021?a. P 0b. P 26,000c. P 38,000d. P 116,000 During 2020, RIS Inc. introduced a new line of machines that carry a two-year warranty againstmanufacturer's defects. Based on industry experience, warranty costs are estimated at 2% of salesin the year of sale and 4% in the year after sale. Sales and actual warranty expenditures for thefirst two-year period were as followsActualWarrantySales2020#6,000202140,000P46,000400,0001,000,0001,400,000#

Liability is an obligation that has to be paid by sacrificing the assets of the company. It includes…

Answered: What amount should RIS report as a…

Business

Accounting

What amount should RIS report as a liability at December 31, 2021? a. P 0 b. P 26,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 10E

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