Multiple Choice
Ranch Company estimates warranty expense as 5% of sales. On January 1, warranties payable was $13,000. During the year Ranch paid $5,000 to meet its warranty obligations and recorded sales of $120,000. The December 31 liability for the warranty is
A) $10,000.
B) $12,000.
C) $6,000.
D) $14,000.
Correct Answer:
Verified
Correct Answer:
Verified
Q92: Gain contingencies<br>A)should be accrued when probable and
Q93: The economic essence of one of the
Q94: If a loss contingency related to a
Q95: An income tax accrual at yearend will
Q96: Alpine, Inc. sells baseball tickets for professional
Q98: What concerns might exist when a company's
Q99: Pension expense is<br>A)accrued each period as employees
Q100: On October 1, 2017, Brooks Company
Q101: Sunshine Company obtained a line of credit
Q102: A pension is<br>A)a cost such as health