A Plus Appliances sells dishwashers with a four-year warranty. In 2019, sales revenue for dishwashers is $94,000. The company 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.)
A) $4230
B) $1058
C) $1548
D) $3318
A) $4230
Explanation: Sales Revenue $94,000
Warranty Expense 4.5%
Estimated Warranty Payable ($94,000 × 4.5%) $4230
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