deliachang
May 16, 2008, 08:47 AM
Can you please tell me if I am on the right track?
liabilities for warranties = 19,000
paid to settle warranty claims during the year = 40,000
accured warranty expenses = 50,000
The question is what was the liability for warranties shown on the balance sheet?
I have this:
The company started with 19,000 in liabilities and accrued warranty expenses for 50,000 which totales 69,000.
The company paid 40,000 on warranty claims, so 69,000 - 40,000 equals 29,000.
Is this correct?
liabilities for warranties = 19,000
paid to settle warranty claims during the year = 40,000
accured warranty expenses = 50,000
The question is what was the liability for warranties shown on the balance sheet?
I have this:
The company started with 19,000 in liabilities and accrued warranty expenses for 50,000 which totales 69,000.
The company paid 40,000 on warranty claims, so 69,000 - 40,000 equals 29,000.
Is this correct?