Calculate the warranty liabilityr at the end of each year

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Reference no: EM132482262

Question 1: Calculate warranty costs for multiple years. Silver Cloud manufactures and sells computers for $2,000 each, with a two-year parts and labour warranty. Based on prior experience, the company expects, on average, to incur warranty costs equal to 5% of sales. The business reports the following sales and warranty cost information: Sales (m1 Actual Warranty Costs 2015 500 $30,000

2016 600 46,000

2017 52 5 53,500

Instructions

Question 2: Calculate the warranty expense for each year.

Question 3: Calculate the warranty liabilityr at the end of each year.

Reference no: EM132482262

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