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View Full Version : Warranty expense calculate?


lsanchez
Nov 12, 2011, 06:28 AM
A company sells computers at a selling price of $1800.00 each. Each computer has a 2 year warranty that covers replacement of defective parts. It is estimated that 2% of all computers sold will be returned under the warranty with an average cost of $150 each. During Nov, the company sold 30,000 computers and 400 computers were serviced under the warranty during Nov at a total cost of $55,000. The balance in the Estimated Warranty Liability account at Nov 1 was $29,000. What is the company's warranty expense for the month of Nov?