Carpenter Inc. had a balance of $82,000 in its quality-assurance warranty liability account as of December...
Carpenter Inc. had a balance of $82,000 in its quality-assurance warranty liability account as of December 31, 2020. In 2021, Carpenter's warranty expenditures paid were $447,000. Its warranty expense is calculated as 1% of sales. Sales in 2021 were $40.2 million. What was the balance in the warranty liability account as of December 31, 2021?
Multiple Choice
-
$125,400.
-
$37,000.
-
$484,000.
-
$434,200.
Homework Answers
| Carpenter Inc. had a balance of $82,000 in its quality-assurance warranty liability account as of December 31, 2020. In 2021, Carpenter's warranty expenditures paid were $447,000. Its warranty expense is calculated as 1% of sales. Sales in 2021 were $40.2 million. What was the balance in the warranty liability account as of December 31, 2021? | |||
| Multiple Choice | |||
| $ 125,400.00 | |||
| $ 37,000.00 | Correct | ||
| $ 484,000.00 | |||
| $ 434,200.00 | |||
| Warranty Liability | |||
| Expenditur | 447000 | 82000 | Beg. Bal |
| 402000 | Warranty Exp. | ||
| 37000 | End. Bal. | ||
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