Question

At January​ 1, 2019, the Accrued Warranty Payable is $ 1 comma 100. During​ 2019, the company recorded Warranty Expense of $ 19 comma 100. During​ 2019, the company replaced defective products in accordance with product warranties at a cost of $ 12 comma 800. What is the Accrued Warranty Payable at December​ 31, 2019?

Answer 1

$7,400

Step-by-step explanation:

The computation of the accrued Warranty Payable at December​ 31, 2019 is shown below:

= Opening balance in accrued warranty payable + warranty expense - defective products

= $1,100 + $19,100 - $12,800

= $7,400

We simply applied the above formula so that the Accrued Warranty Payable at December​ 31, 2019 could come