Walden Company offers a six-month warranty on all the merchandise it sells.For 2012,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 2012
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 2012,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 2012
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