In 2017, Hydrogen Corp.began selling a new line of products that carry a two-year warranty against defects.Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows: Hydrogen uses the expense approach to account for warranties.What is the estimated warranty liability at the end of 2018?
A)$73,500
B)$43,500
C)$28,500
D)$12,000

Question

In 2017, Hydrogen Corp.began selling a new line of products that carry a two-year warranty against defects.Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows:  Hydrogen uses the expense approach to account for warranties.What is the estimated warranty liability at the end of 2018?
A)$73,500 
B)$43,500 
C)$28,500 
D)$12,000

Quizplus · Accepted Answer

The Answer of In 2017, Hydrogen Corp.began selling a new line of products that carry a two-year warranty against defects.Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows:  Hydrogen uses the expense approach to account for warranties.What is the estimated warranty liability at the end of 2018?
A)$73,500 
B)$43,500 
C)$28,500 
D)$12,000