General Store offers a warranty on its sales. At 1 January, estimated warranty payable was $6 000. During the year, General Stores paid warranty claims of $500 and recorded warranty expense of $1 00. What is the account name and amount of the current liability that will be reported on the balance sheet as at 31 December?

Question

Quizplus · Accepted Answer

The estimated warranty payable is calculated by taking the beginning balance of $6,000, adding the warranty expense of $1,000, and subtracting the warranty claims paid of $500, resulting in $6,500.

General Store Offers a Warranty on Its Sales