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A company sells computers at a selling price of $1,400 each. Each computer has a 2 year warranty that covers replacement of defective parts. It is estimated that 7% of all computers sold will be returned under the warranty at an average cost of $190 each. During November, the company sold 30,000 computers, and 400 computers were serviced under the warranty during November at a total cost of $56,000. The balance in the Estimated Warranty Liability account at November 1 was $42,000. What is the company's warranty expense for the month of November?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M942687

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