Solution-What is the estimated warranty liability at the end

What is the estimated warranty liability at the end

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Reference no: EM132573555

Question - In 2012, Payton Corporation began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows:

First year of warranty 2%

Second year of warranty 5%

	2012	2013
Sales	$600,000	$800,000
Actual warranty expenditures	20,000	40,000

Required - What is the estimated warranty liability at the end of 2013?

Reference no: EM132573555

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What is the estimated warranty liability at the end

Reference no: EM132573555

Reference no: EM132573555

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