Right Medical introduced a new implant that carries a five-year warranty against manufacturers defects. Based...
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Accounting
Right Medical introduced a new implant that carries a five-year warranty against manufacturers defects. Based on industry experience with similar product introductions, warranty costs are expected to approximate 1% of sales. Sales were $13 million and actual warranty expenditures were $28,500 for the first year of selling the product. What amount (if any) should Right report as a liability at the end of the year?
BEGINNING BALANCE
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WARRANTY EXPENSE
ACTUAL EXPENDITURES
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ENDING BALANCE
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