Walden Company offers a six-month warranty on all the merchandise it sells. For 2014, total sales were $528,000. The company estimates that its warranty cost will be 2% of sales. During the year, the company paid $6,100 for repairs provided to customers.
Required:
Indicate how the company's financial statements would be affected by
a) the sales during 2014
b) warranty expense
c) payment for repairs
Use the statements model, below. Show dollar amounts of increases and decreases; enter NA if an item is not affected. In the cash flows column, designate cash flows as operating activities (OA), investing activities (IA) or financing activities (F

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The Answer of Walden Company offers a six-month warranty on all the merchandise it sells. For 2014, total sales were $528,000. The company estimates that its warranty cost will be 2% of sales. During the year, the company paid $6,100 for repairs provided to customers.
Required:
Indicate how the company's financial statements would be affected by
a) the sales during 2014
b) warranty expense
c) payment for repairs
Use the statements model, below. Show dollar amounts of increases and decreases; enter NA if an item is not affected. In the cash flows column, designate cash flows as operating activities (OA), investing activities (IA) or financing activities (F

Walden Company Offers a Six-Month Warranty on All the Merchandise