Answer:
$30,000
Explanation:
Warranty liability is a liability account used to report the expected amount of repairing or replacing products already shipped. It's a contingency liability and it should be recorded independently from the actual warranty costs. Therefore, warranty liability, in this case, is:
$600,000 * 0.05 = $30,000
The estimated warranty liability reported in the balance sheet this year is $30,000
Answer:
i dont get it, is there a question?
Explanation:
When actual revenue <u>exceeds</u> what the revenue should have been, the variance is labelled favourable.
Hope that helps!
