A company sells computers at a selling price of $1,800 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 at an average cost of $150 each. During November, the company sold 30,000 computers, and 400 computers were serviced under the warranty at a total cost of $55,000. The balance in the Estimated Warranty Liability account at November 1 was $29,000. What is the company's warranty expense for the month of November?© BrainMass Inc. brainmass.com June 4, 2020, 3:20 am ad1c9bdddf
No, there are some distracting details you don't need....including the $29,000. See a tutorial in the activity in the liability attached.