Liability for the warranty
Jumbo Company estimates warranty expense as 5% of sales. On January 1, warranties payable was $10,000. During the year Jumbo paid $5,000 to meet its warranty obligations and recorded sales of $120,000. The December 31 liability for the warranty is?
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Jumbo Company estimates warranty expense as 5% of sales. On January 1, warranties payable was $10,000. During the year Jumbo paid $5,000 to meet its warranty obligations and recorded sales of $120,000. The December 31 liability for the warranty is
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