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saw5 [17]
2 years ago
5

​A-Plus Appliances sells dishwashers with a​ four-year warranty. In​ 2019, sales revenue for dishwashers is​ $94,000. The compan

y estimates warranty expense at​ 4.5% of revenues. What is the total estimated warranty payable of​ A-Plus Appliances as of December​ 31,2019? A-Plus Appliances began operating in 2019.​ (Round your final answer to the nearest​ dollar.)
Business
1 answer:
Elan Coil [88]2 years ago
6 0

Answer:

$4230 is the correct answer to the given question .

Explanation:

As Mention in the question the sales revenue to the dishwashers = $94,000

Also the company estimated  warranty expense cost is =4.5% of revenues,

Now the estimated warranty payable can be determined by the following formula  

Annual\  sales\  revenue\ for \ the \  dishwashers\ * warranty\  expense\  revenues.

 = \ 94000\ * \ 4.5\ % \ of \  revenues

== $4230

                                             

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