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At the beginning of 2018, Angel Corporation began offering a two-year warranty on its products. The...

At the beginning of 2018, Angel Corporation began offering a two-year warranty on its products. The warranty program was expected to cost Angel 8% of net sales. Net sales made under warranty in 2018 were $187 million. Fifteen percent of the units sold were returned in 2018 and repaired or replaced at a cost of $4.60 million. The amount of warranty expense on Angel's 2018 income statement is:

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Answer #1
Net sales for the year- 2018 187000000
Estimated warranty expenses 8% of sales
Warranty expenses to be recognized 14960000
(187000,000 *8%)
Answer is Warranty expense for Year-2018 : $ 14960,000
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