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vredina [299]
3 years ago
11

In 2017, Scranton, Inc. sold 2,000 carpets for $50 each. The carpets carry a two-year warranty for repairs. Scranton estimates t

hat repair costs will average 3% of the total selling price. What amount would be recorded in the warranty liability account as a result of selling the carpets during 2017
Business
1 answer:
vodomira [7]3 years ago
8 0

Answer:

$3,000

Explanation:

Inventory Sold   2,000*$50=$100,000

Warranty Expense $100,000*3%=$3,000

Therefore $3,000 would be reported in warranty liability account.

When any claim for warranty is reported,the liability will be set off by debiting it and corresponding effect to inventory or stores will be taken.

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Answer:

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Explanation:

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Alexxandr [17]
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3 years ago
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