Synergy Appliances sells dishwashers with a four-year warranty. In 2017, sales revenue for dishwashers is $97,000. The company estimates warranty expense at 4.5% of revenues. What is the total estimated warranty payable of Synergy Appliances in 2017? (Round your final answer to the nearest dollar.)

The total estimated warranty payable is $4,365

In 2017 the revenue for dishes is $97,000

the company's estimated warranty expense is 4.55

Therefore the total estimated warranty payable can be calculated as follows

= 97,000 × 4.5/100

-= 97,000 ×0.045

= 4,365

Hence the total estimated warranty payable of Synergy Appliances in 2017 is $4,365

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$4,365

Explanation:

The computation of the total estimated warranty payable is shown below:

= Sales revenue × estimated warranty expense percentage

= $97,000 × 4.5%

= $4,365

By multiplying the sales revenue with the estimated warranty expense percentage we can get the total estimated warranty payable and the same is shown in the above computation part