Bespoke, Inc offers warranties on all their bikes
They estimate warranty expense at 3.5% of sales. At the beginning of 2017, the Estimated Warranty Payable account had a credit balance of $1,900. During the year, Bespoke had $296,000 in sales and had to pay out $5,900 in warranty payments. At the end of the year, what is the closing balance in the Estimated Warranty Payable accounts?
A) $6,360
B) $7,800
C) $8,460
D) $10,360
A .Opening Balance of Estimated Warranty Payable $1,900
Add: Warranty Expense (3.5% x $296,000 ) 10,360
Less: Warranty Repairs 5,900
Closing Balance of Estimated Warranty Payable $6,360
You might also like to view...
As you choose data sources for a research project—
a. you will often use secondary data sources before primary sources. b. you will rarely confront ethical dilemmas. c. you should use the most convenient data sources. d. you will get your most valuable data from friendly primary sources.
____ sentences contain at least two independent clauses and one dependent clause
A) Simple B) Compound C) Complex D) Compound-complex
A net loss for the year decreases the balance in Retained Earnings
Indicate whether the statement is true or false
Unless otherwise agreed, every merchant seller warrants that goods are sold free of any rightful claim by any third party.?
Indicate whether the statement is true or false