A company sells computers for $1,700 each. Each computer has a two-year warranty that covers replacement...
A company sells computers for $1,700 each. Each computer has a two-year warranty that covers replacement of defective parts. It is estimated that 2% of all computers sold will be returned under the warranty with an average cost of $188 each. During November, the company sold 49,000 computers;. 590 computers were serviced under the warranty during November at a total cost of $74,000. The balance in the Estimated Warranty Liability account at November 1 was $38,500. What is the company's warranty expense for the month of November?
$74,000
$184,240
$35,500
$110,920
$92,120
Homework Answers
| Company's warranty expense for the month of November = 49000*2%*188= $184,240 |
| Option 2 $184,240 is correct |
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