At January 1, 2017, the Estimated Warranty Payable is $1100. During 2017, the company recorded Warranty Expense of $19,500. During 2017, the company replaced defective products in accordance with product warranties at a cost of $12,000
What is the Estimated Warranty Payable at December 31, 2017?
A) $7500
B) $8600
C) $20,600
D) $19,500
B
Explanation: B) Beginning Balance $1100 + Warranty Expense $19,500 - Warranties Met $12,000 = $8600
Business
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