Tractor World offers warranties on all their tractors. They estimate warranty expense at 2.4% of sales. At the beginning of 2013, the Estimated warranty payable account had a credit balance of $900. During the year, Tractor World had $285 000 of sales, and had to pay out $5 100 in warranty payments. At the end of the year, how much Warranty expense was reported on the income statement?

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The Answer of Tractor World offers warranties on all their tractors. They estimate warranty expense at 2.4% of sales. At the beginning of 2013, the Estimated warranty payable account had a credit balance of $900. During the year, Tractor World had $285 000 of sales, and had to pay out $5 100 in warranty payments. At the end of the year, how much Warranty expense was reported on the income statement?

Tractor World Offers Warranties on All Their Tractors