Cycle Haven, Inc offers warranties on all their bikes
They estimate warranty expense at 3.5% of sales. At the beginning of 2017, the Estimated Warranty Payable account had a credit balance of $1,400. During the year, Cycle Haven had $299,000 in sales and had to pay out $5,900 in warranty payments. How much Warranty Expense will be reported on the 2017 income statement?
A) $5,965
B) $7,300
C) $9,065
D) $10,465
D .Sales revenue $299,000
Rate of estimated warranty expense 3.5%
Warranty Expense to be reported $10,465
You might also like to view...
The period of time for which interest is to be capitalized ends when ________
A) no additional interest cost is actually being incurred on direct financing for the acquisition of the asset B) a constructed is substantially complete and put into use C) a constructed asset is substantially complete and ready for its intended use D) an acquired asset is received and ready for its intended use
The divisibility property of LP models simply means that we allow only integer levels of the activities
a. True b. False Indicate whether the statement is true or false