Inline incorporated manufactures skates and equipment for

Assignment Help Accounting Basics

Reference no: EM13595068

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 $3,800 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 selling price. Assume that at the start of the year Inline's balance sheet included an estimated warranty liability of $17 million and at the end of the year, the accrued warranty liability balance was $13 million.

a. Calculate Inline's warranty expense for 2012.
b. How much did Inline pay during 2012 to repair and or replace goods under warranty?

Reference no: EM13595068

Questions Cloud

The company can only perform 14000 set-ups each period yet : the following are production and cost data for two products x and y. product x product y 450 280 contribution to margin

Describe the main components of the liquid : describe the main components of the liquid chromatography-mass spec and how they are used in sample identification.

Discuss with your group the various options available to : blujay aviation has allowed their clients to pay 30-60 days after services have been given. this causes their cash flow

There are many types of covalent bonds with varying : there are many types of covalent bonds with varying polarities and there are also multiple covalent bonds double

Inline incorporated manufactures skates and equipment for : inline incorporated manufactures skates and equipment for in-line skating. the company offers a one-year warranty on

Plastix inc bought a molding machine for 550000 on january : plastix inc. bought a molding machine for 550000 on january 1 2011. the company expected to use this machine to

Tylers consulting company has purchased a new 15000 copier : tylers consulting company has purchased a new 15000 copier. this overhead cost will be shared by the purchasing

A first-order reaction had a rate constant k of 00123 1s : a first-order reaction had a rate constant k of 0.0123 1s. if the initial concentration of reactant is 1.25m what

An aqueous dextrose solution having a density of 104 gcm3 : question an aqueous dextrose solution having a density of 1.04 gcm3 freezes at -1.15degc. find the osmotic pressure of

User Account

All Pages