Sony introduces a new compact music player to compete with Apple's iPod that carries a...
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Accounting
Sony introduces a new compact music player to compete with Apple's iPod that carries a two-year warranty against manufacturer's defects. Based on Industry experience with similar product introductions, warranty costs are expected to be approximately 2% of sales. By the end of the first year of selling the product, total sales are $29.8 million and actual warranty expenditures are $180,000. What amount (if any) should Sony report as a liability at the end of the year? (Enter your answer in dollars, not millions. For example, $5.5 million should be entered as 5,500,000.) Warranty liability
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