What amount of warranty expense will appear

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ABC, Inc., provides warranties for many of its products. The January 1, 2011, balance of the Estimated Warranty Liability account was $28,500. Based on an analysis of warranty claims during the past several years, this year's warranty provision was estimated to be 0.2 percent of sales. During 2011, the actual costs of servicing products under warranty were $25,000, and sales were $5,300,000.
(a.) What amount of Warranty Expense will appear on the income statement for 2011?
(b.) What amount will be reported in the Estimated Warranty Liability account on the December 31, 2011 balance sheet?

Reference no: EM13136859

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