Business
Business, 18.03.2021 01:20, unicornqueen30

Shaw Co provides a 3-year warranty on any small appliance that it manufactures. In the past, warranty claims have been made on 2% of all appliances sold and have cost Shaw an average of $10 per claim to repair. During years D and E, the following transactions and events occur : Year D Year E
Appliance sales units 10k units 12k units
Warranty costs incurred $1800 $2200
On 1/1 year D Estimated Warranty Liability was $4000. Assuming Shaw uses the usual accrual method, provide the following amounts:
a. Year expense.
b. Year E warranty expense.
c. 12/31 / D balance Estimated Warranty Liability .
d. 12/31 / E balance in Estimated Warranty Liability .

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