Mckay company sells merchandise with a one-year warranty. in year 1, sales consisted of 1,200 units. it is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in year 1 and 70% in year 2. in the year 1 income statement, mckay should show warranty expense of?

$12,000

Explanation:

Given;

Sales in year 1 = 1,200 units

Estimated average warranty repair = $10 per unit sold

Percent of repairs made in year 1 = 30%

Percent of repair made in year 2 = 70%

Now,

The warranty Expenses for the year 1 will be

= Number of units sold ×  Estimated average warranty repair

= 1200 Units × $10 Per Unit

= $12,000

Hence,

Mckay should show warranty expense of $12,000 in year 1

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

                                          hope it

answer90,000;