A company has a selling price of $1,800 each for its printers. Each printer has a...

A company has a selling price of $1,800 each for its printers. Each printer has a 2 year warranty that covers replacement of defective parts. It is estimated that 2% of all printers sold will be returned under the warranty at an average cost of $150 each. During November, the company sold 30,000 printers, and 400 printers were serviced under the warranty at a total cost of $55,000. The balance in the Estimated Warranty Liability account at November 1 was $29,000.

Calculate and record the company’s warranty expense for November 2016.

What is the balance of the estimated warranty liability as of November 30, 2016? Show all work!

Expert Solution

Please find the attached sheets,

Please comment for any other explanation or query.

Thanks,

ekkarill92 answered 2 years ago

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