A Plus Appliances sells dishwashers with a four−year warranty. In 2019, sales revenue for dishwashers is...
A Plus Appliances sells dishwashers with a four−year warranty. In 2019, sales revenue for dishwashers is $95,000. The company estimates warranty expense at 4.5% of revenues. What is the total estimated warranty payable of A Plus Appliances as of December 31, 2019? A Plus Appliances began operating in 2019. (Round your final answer to the nearest dollar.)
A.$4,275
B.$1,565
C.$1,069
D.$3,353
Homework Answers
Answer:
The coorect Answer is Option is A) 4,275
| Sales revenue for dishwashers | 95,000 | ||
| Estimated warranty expense | 4,275 | (95,000*4.5%) | |
| Journal entry | |||
| Warranty expense | 4,275 | ||
| Warranty payable | 4,275 | ||
| So warranty payable | 4,275 | ||
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