What is butchers warranty expense for year four

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Reference no: EM131216224

Butcher Co. sold 10,000 toys in Year4 for $20 each. The company expects that 5% of the toys will be returned under warranty for a refund of the sales price in the 2-year warranty period. There were $6,000 of warranty obligations paid in cash during Year4. What is Butcher's warranty expense for Year4?

a. $20,000 b. $10,000 c. $6,000 d. $5,000 e. $3,000

Reference no: EM131216224

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