A company estimates the cost of products warranties to be 3% of sales. The beginning balance in Estimated Warranty Liability account is $15,000. Sales for the period was $795,000. During the period, $32,600 was actually paid for warranty related costs. What is the ending balance in the Warranty Liability account?
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1 | Current Assets | Easy | |
2 | Effect on the Current Ratio | Easy | |
3 | Liability Classification | Easy | |
4 |
Contingent Liabilities
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Moderate | |
5 | Contingent Liabilities - Warranties | Moderate | |
6 | Account Classifications | Hard |
1 | Current Assets | 9:57 | |
2 | Non-Current Assets | 10:25 | |
3 | Current Liabilities | 6:24 | |
4 | Non-Current Liabilites | 2:00 | |
5 | The Classified Balance Sheet | 4:48 | |
6 | Ratios: Current Ratio | 4:00 | |
7 | Interest Bearing Notes | 8:26 | |
8 | Non-interest Bearing Notes | 6:16 | |
9 | Contingencies | 5:58 |