A company sells computers that come with a 3-year warranty. The company estimates that Warranty expense...

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A company sells computers that come with a 3-year warranty. The company estimates that Warranty expense is, on average, 3% of

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Answer 1

Answer #1

c.$34335

Dollar value of warranty repairs performed during the year = Average warranty expense - Difference between closing and opening warranty liability

so, Average warranty expense = 1991601*3% =$59748

Difference between closing and opening warranty liability= $66672-$41259=$25413

Dollar value of warranty repairs performed during the year=$59748-$25413=$34335

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Answer 2

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