State Street Digital, Inc. starts the year with $ 2 comma 700 in its Estimated Warranty Payable account. During the year, ther

Question

3 years ago

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State Street Digital, Inc. starts the year with $ 2 comma 700 in its Estimated Warranty Payable account. During the year, ther

e were $ 219 comma 000 in sales and $ 5 comma 000 in warranty repair payments. State Street Digital estimates warranty expense at 4 % of sales. The Warranty Expense for the year is ________.

Business

1 answer:

Sergio039 [100] · Answer 1 · 2022-01-26T01:10:39+03:00

Answer:

$8,760

Explanation:

The movement in the warranty payable account balance over a period is as a result of the additional warranty expenses payable due to sales and the amount paid as warranty expense during the period.

Given that State Street Digital estimates warranty expense at 4 % of sales, the Warranty Expense for the year

= 4% * $219,000

= $8,760

State Street​ Digital, Inc. starts the year with $ 2 comma 700 in its Estimated Warranty Payable account. During the​ year, ther

State Street Digital, Inc. starts the year with $ 2 comma 700 in its Estimated Warranty Payable account. During the year, ther