Peter Inc. manufactures and sells computer monitors with a three-year warranty. Warranty costs are expected...
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Peter Inc. manufactures and sells computer monitors with a three-year warranty. Warranty costs are expected to average 8% of sales during the warranty period. The following table shows the sales and actual warranty payments during the first two years of operations: (Click to view the sales and actual warranty payments during the first two years of operations.) Based on these facts, what amount of warranty liability should Peter Inc. report on its balance sheet at December 31, 2017? O A. $96,000 O B. $32,000 OC. $59,500 OD. $36,500 A Sales and actual warranty payments - X Year Sales Warranty Payments $ 2016 2017 500,000 $ 700.000 4,500 32,000 Print Done
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