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?
| Click Here to View All Chapter 9 Problems at Once | View | ||
| 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 |