A national retailer reports a warranty liability on its balance sheet equal to 5% of...
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Accounting
A national retailer reports a warranty liability on its balance sheet equal to 5% of sales. Customers have up to three calendar months to return defective products. Sales for February were $300,000, sales for March were $300,000, sales for April were $400,000, and sales for May were $500,000. What is the maximum liability the retailer would report on its April 30 balance sheet?
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