Use the following information to answer the next_3 questions. On January 1, 2019, Nance Company sells...

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business accounting

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Answer 1

Answer #1

5)Correct option is "a" -75000

Warranty expense = number of copiers sold * estimated warranty cost per machine

= 500 *150

= $75000

6)Correct option is 'C"- 57000

Estimated warranty liability at end of 2019 = Warranty expense - warranty liability paid

= 75000 - 18000

= 57000

7)correct option is"D"-28500

Liability estimated to be payable within one year from reporting period that is December 31,2019 is classified as current .So liability to be payable within one year will be classified as current.

Current liability : 57000 *1/2 = 28500

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Answer 2

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Use the following information to answer the next_3 questions. On January 1, 2019, Nance Company sells...

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