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During the current year, a company sold 12,000 units of a product that was covered...

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Accounting

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During the current year, a company sold 12,000 units of a product that was covered by a two-year assurance warranty against defects. Experience indicates that approximately 2% of the units sold will require warranty repairs, at an average cost of $50 per unit. The actual costs incurred during the year for repairs under the warranty totalled $7,900. What amount of liability (if any) should be reported on the company's statement of financial position at the end of the current year? $ Amount of liability During the spring and summer of 2020, the Prairie Predators hockey team sold 2,400 season tickets for the 2020-2021 hockey season. Each of the season tickets was sold for $450 and covered 20 games, with 8 to be played in the fall (October to December) and 12 in the winter (January to March). What is the effect on the team's financial statements when the season tickets are sold? What amount of liability (if any) related to the season tickets should be reported on the team's December 31, 2020, statement of financial position? Revenue $ Amount of liability $ $

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