Question

Assume Smart Touch Learning sold​ 10,000 tablet computers in December 2016 that were covered by a​ 2-year warranty. Smart Touch Learning estimates that it will incur warranty costs on these tablets as​ follows: $ 100 of warranty costs in​ 2016, $ 400 in​ 2017, and $ 800 in 2018. Smart Touch Learning will record a warranty expense of

Answer 1

Smart Touch Learning should record a warranty expense of $100 for the year 2016 for the tablet computers sold in December 2016, based on the provided costs estimates.

Step-by-step explanation:

The student has asked a question related to accounting for warranty expenses. Smart Touch Learning will need to record a warranty expense for the tablet computers it sold in December 2016.

According to the provided warranty costs estimates of $100 for 2016, $400 for 2017, and $800 for 2018, these figures should be accrued in each respective year.

Since the question only asks for the warranty expense recorded for the year 2016 when the sales occurred, the warranty expense recorded in 2016 would be $100.