question archive The balance of the Estimated Warranty Liability account was $28,000 on January 1, 2019, and $36,300 on December 31, 2019
The balance of the Estimated Warranty Liability account was $28,000 on January 1, 2019, and $36,300 on December 31, 2019
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The balance of the Estimated Warranty Liability account was $28,000 on January 1, 2019, and $36,300 on December 31, 2019. Based on an analysis of warranty claims during the past several years, this year's warranty provision was established at 2% of sales, and sales during the year were $4,200,000. What amount of warranty expense will appear on the income statement for the year ended December 31, 2019?
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Step-by-step explanation
| Warranty Expense (Warranty Provision for the Year) | = 2% of Sales |
| = $4,200,000* 2% | |
| Amount of warranty expense will appear on the income statement for the year ended December 31, 2019 | = $84,000 |
