Solution-How much is the estimated liability for warranty

How much is the estimated liability for warranty at December

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Question - Use the following information for the next two questions: Doberman Incorporated started selling iPad with a four-year warranty against factory defects in 2018. Estimated warranty costs related to pesos sales are as follows: 1% of sales in the year of sale, 2% of sales in the year after sale, 4% of sales two years after sale and 7% of sales three years after sale. Information relating to sales and actual warranty expenditures for the year 2018 through 2021 is as follows:

Year	Sales	Actual Warranty Expenditure
2018	3,280,000	110,600
2019	4,320,500	200,480
2020	4,585,800	310,690
2021	5,320,300	400,480

Required -

How much is the warranty expense in 2020?

How much is the estimated liability for warranty at December 31, 2021?

Reference no: EM132793866

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How much is the estimated liability for warranty at December

Reference no: EM132793866

Reference no: EM132793866

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