Ranch Company estimates warranty expense as 5% of sales. On January 1, warranties payable was $10,000, and the December 31 liability for the warranty was $11,000. During the year Ranch recorded sales of $150,000.
The amount paid by Ranch during the year to meet its warranty obligations was:

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Ranch Company estimates warranty expense as 5% of sales. On January 1, warranties payable was $10,000, and the December 31 liability for the warranty was $11,000. During the year Ranch recorded sales of $150,000.
The amount paid by Ranch during the year to meet its warranty obligations was:

Ranch Company Estimates Warranty Expense as 5% of Sales