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Business, 03.05.2021 14:50 ibrahimuskalel

During 2020, Desert Company introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to dollar sales are 2% within 12 months following the sale and 4% in the second 12 months following the sale. Sales and actual warranty expenditures for the years ended December 31, 2020 and 2021 are as follows: Sales Actual Warranty Expenditures 2020 $800,000 $12,000 2021 $1,000,000 $35,000 TOTAL $1,800,000 $47,000 What is the amount of estimated warranty liability Desert should report at December 31, 2021?

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During 2020, Desert Company introduced a new product carrying a two-year warranty against defects. T...
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