INTERMEDIATE ACCOUNTING
8th Edition
ISBN: 9780078096488
Author: SPICELAND
Publisher: MCG
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Chapter 13, Problem 6CPA
To determine
Warranty:
Warranty is a legal binding by a company, where if the company finds any default in the goods and service sold by them within a definite period they are replaced for a free of charge. Warranty is mostly provided for a period of 12 months.
To Calculate: the amount that Company G should report as estimated liability in its December 31, 2017.
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A company updates its inventory perpetually. Its beginning inventory is $48,000, goods purchased during the period cost $145,000, and the cost of goods sold for the period is $160,000. What is the amount of the ending inventory?
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