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Strikers, Inc. sells soccer goals to customers over the Internet. History has shown that 4% of...

Strikers, Inc. sells soccer goals to customers over the Internet. History has shown that 4% of Strikers' goals will need repair under the warranty program. For the year, Strikers has sold 3,900 goals and 46 have been repaired. If the estimated cost to repair a goal is $120, what would be the Warranty Liability at the end of the year? Multiple Choice $13,200. $18,720. $13,250. $0.

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Answer #1

Warranty liability balance = (3,900 X 4% X $120) - (46 X $120) = $13,200

Warranty Liability at the end of the year = $13,200

1st option.

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