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Estimated warranty payable of $ 1,300 at the end of 2017. During 2018​, Roy Electric made sales of $ 140,000 and expects product warranties to cost the company 1 percent of the sales. During 2018​, Roy Electric paid $ 2,300 for warranties. What is Roy Electric​'s Estimated warranty payable at the end of 2018​?

A. $ 2,400
B. $ 1,400

User Jeannette
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1 Answer

3 votes

Answer:

$400

Explanation:

Given at the end of 2017 estimated warranty payable is $ 1,300

Also given that During 2018​, Roy Electric made sales of $ 140,000 and expects product warranties to cost the company 1 percent of the sales

The warranties made in the year 2018 is
140000* (1)/(100)=1400

Given that the company already paid $2300 warranties so

Total warranties payable are 1300 + 1400 - 2300 = $400

User Dldnh
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