Business, 17.04.2020 20:13 maltipoosarecool
East Corp. manufactures stereo systems that carry a two-year warranty against defects. Based on past experience, warranty costs are estimated at 4% of sales for the warranty period. During 2005, stereo system sales totaled $3,000,000, and warranty costs of $67,500 were incurred. In its income statement for the year ended December 31, 2005, East should report warranty expense of:
A. $52,500
B. $60,000
C. $67,500
D. $120,000
Answers: 3
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East Corp. manufactures stereo systems that carry a two-year warranty against defects. Based on past...
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