Digital Electronics sells electronic equipment and appliances.During 2012 they made sales of
$2,400,000.The average gross profit on products was 35%.All products include a one-year warranty and estimated warranty costs are normally 10% of the sales price.At the end of 2012, The company had spent
$100,000 on product repairs in the current year.
Required:
Prepare a partial income statement for Digital Electronics that includes all product related expenses.

Question

Quizplus · Accepted Answer

The Answer of Digital Electronics sells electronic equipment and appliances.During 2012 they made sales of
$2,400,000.The average gross profit on products was 35%.All products include a one-year warranty and estimated warranty costs are normally 10% of the sales price.At the end of 2012, The company had spent
$100,000 on product repairs in the current year.
Required:
Prepare a partial income statement for Digital Electronics that includes all product related expenses.

Digital Electronics Sells Electronic Equipment and Appliances