In 2016, Morton Co sold 100 hot air balloons at $4,000 each. The balloons carry a 5-year warranty for defects. Morton estimates that repair costs will average 4% of the total selling price. The estimated warranty liability at the beginning of the year was $42,000 . $11,000 in claims was actually incurred during the year to honor their warranty. What was the balance in the ending estimated
warranty liability at the end of the year?
a. $47,000
b. $42,000
c. $37,000
d. $ 5,000
a
Business
You might also like to view...
A(n) ______________________ lease is recorded on the lessee's balance sheet as an asset and related liability
Fill in the blank(s) with correct word
Business
Period cost and product cost are synonymous terms
Indicate whether the statement is true or false
Business
The following sentence is effectively phrased to express the importance of the message: It is absolutely essential that you turn your expense claim in by Friday
Indicate whether the statement is true or false
Business
In an IPO, the option allows the underwriter to sell additional shares if it is profitable to do so
a. overallotment b. offer extension c. continuance d. prolongation
Business