How should inline account for warranty claims?

Reference no: EM13157500

Inline Incorporated manufactures skates and equipment for in-line skating. The company offers a one-year warranty on all products. During 2012, the company recorded net sales of $3,887.4 million. Historically, about 2% of all sales are returned under warranty and the cost of repairing and or replacing goods under warranty is about 50% of retail value. Assume that at the start of the year Inline's balance sheet included an accrued warranty liability of $16.9 million and at the end of the year, the accrued warranty liability balance was $13.0 million.
How should Inline account for warranty claims?

Reference no: EM13157500

Questions Cloud

Name the two evolutionary hypotheses : Name the two evolutionary hypotheses that can explain why organisms senesce (1). Pick one of them, and explain how it works (2). Give an example of this hypothesis-you may use a hypothetical organism and/or traits, provided it is realistic (2).

How many grams of lead(ii) iodide are formed : when 0.500 l of a 1.00 m solution of Pb( NO3) 2 is mixed with 0.500 l of a 1.00 m solution of Kl how many grams of lead(II) iodide are formed

What is the market equilibrium quantity : The water industry in Springfield is competitive, with numerous buyers and sellers. What is the market equilibrium quantity?

Express on-line survey that reported business travelers : What can you conclude based on the results of an American Express on-line survey that reported 355 of 546 business travelers using a laptop computer on overnight business trips ? What is the p-value of the test?

How should inline account for warranty claims? : Inline Incorporated manufactures skates and equipment for in-line skating. The company offers a one-year warranty on all products. During 2012, the company recorded net sales of $3,887.4 million. Historically, about 2% of all sales are returned under..

Define the biological species concept : Define the biological species concept (1). For what kinds of organisms is the concept useful? (2) Give two concrete examples of when the biological species concept does not work and explain why it fails (2).

Tax consequences of the building sale : What are the tax consequences of the building sale to Kevin Broid, and how did you approach the solution?

Arguments for and against the claim : What are the arguments for and against the claim that hunter gatherers were the "original affluent society?" Summarize the arguments on both sides,

Indicate the percentage of the time each possible codon : in a mixed copolymer experiment using polynucleotide phosphorylase, 3/4g:1/4c was used to form the synthetic message. the amino acid composition of the resulting protein was determined to be: indicate the percentage of the time each possible codon..

User Account

All Pages