Cameron Company sells 2,000 units of its product for $ 500 each in 2021. The selling price includes a one-year warranty on parts. It is expected that 3% of the units will be defective and that repair costs will average $ 100 per unit. In 2021, warranty contracts are honoured on 40 units for a total cost of $ 4,000. What amount will be reported on Cameron Company's balance sheet as Estimated Warranty Liability on December 31, 2021?
A) $ 4,000
B) $ 6,000
C) $ 2,000
D) cannot be determined

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The Answer of Cameron Company sells 2,000 units of its product for $ 500 each in 2021. The selling price includes a one-year warranty on parts. It is expected that 3% of the units will be defective and that repair costs will average $ 100 per unit. In 2021, warranty contracts are honoured on 40 units for a total cost of $ 4,000. What amount will be reported on Cameron Company's balance sheet as Estimated Warranty Liability on December 31, 2021?
A) $ 4,000
B) $ 6,000
C) $ 2,000
D) cannot be determined

Cameron Company Sells 2,000 Units of Its Product for