White Hat Digital, Inc starts the year with a credit balance of $3,500 in its Estimated Warranty Payable account

During the year, there were $224,000 in sales and $4,800 in warranty repair payments. White Hat Digital estimates warranty expense at 2% of sales. At the end of the year, what is the balance in the Estimated Warranty Payable account?
A) $4,480 debit
B) $4,800 credit
C) $3,500 debit
D) $3,180 credit

D .Opening Balance of Estimated Warranty Payable $3,500
Add: Warranty Expense 4,480
Less: Warranty Repairs 4,800
Closing Balance of Estimated Warranty Payable $3,180

Business

You might also like to view...

A change from FIFO to LIFO in a period of rising prices will

A) decrease both the current ratio and the inventory turnover ratio. B) increase both the current ratio and the inventory turnover ratio. C) increase the current ratio and decrease the inventory turnover ratio. D) decrease the current ratio and increase the inventory turnover ratio.

Business

When writing a message offering constructive criticism, the writer's primary consideration should be

a. identifying who made the error. b. offering input that could benefit many. c. getting even for the mistake that was made. d. none of the above.

Business