Determining report warranty expense

Reference no: EM13150207

National Appliance Center sells washing machines that carry a three-year warranty against manufacturer's defects. Based on company experience, warranty costs are estimated at $60 per machine. During the year, National sold 48,000 washing machines and paid warranty costs of $340,000. In its income statement for the year ended December 31, National should report warranty expense of

a. $680,000.

b. $960,000.

c. $2,200,000.

d. $2,880,000.

Reference no: EM13150207

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