Jumbo Sales Corporation offers warranties on all their electronic goods.Warranty expense is estimated at 3% of sales revenue.In 2017,the company had $610,000 of sales.In the same year,it paid out $9,000 of warranty payments.Which of the following is the entry needed to record the estimated warranty expense?

Question

Quizplus · Accepted Answer

C)Calculation: Warranty expense = $610,000 × 3% = $18,300

Jumbo Sales Corporation Offers Warranties on All Their Electronic Goods