Multiple Choice
Marin Company sells 9,000 units of its product in 2021 for $500 each.The selling price includes a one-year warranty on parts.It is expected that 3% of the units will 1.and that repair costs will average $50 per unit.In the year of the sale, warranty contracts
Are honored on 180 units for a total cost of $9,000.
What amount will be reported on Marin Company's balance sheet as Warranty Liability on December 31, 2021?
A) $9,000.
B) $13,500.
C) $4,500.
D) Cannot be determined.
Correct Answer:
Verified
Correct Answer:
Verified
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Q12: Repair costs incurred in honoring warranty contracts
Q13: If a liability is dependent on a
Q14: A contingent liability is a liability that
Q15: In a defined-contribution plan, an employer only
Q16: Which of the following items would not
Q18: Disclosure of a contingent liability is usually
Q19: Warranty expenses are reported on the income
Q20: Postretirement benefits consist of payments by employers
Q21: The paid absence that is most commonly