A company sells its product subject to a warranty that covers the cost of parts and labour for repairs during the six mo

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A Company Sells Its Product Subject To A Warranty That Covers The Cost Of Parts And Labour For Repairs During The Six Mo 1 (41.49 KiB) Viewed 9 times

A company sells its product subject to a warranty that covers the cost of parts and labour for repairs during the six months after sale. warranty costs are estimated to be 3.5% of sales for parts, and 1.25% of sales for labour. During the month of June, the company performed warranty work and used $8,000 worth of parts and paid $2,000 in wages for labour to do the warranty work. Sales for June amounted to $452,000. If the Estimated Warranty Liability account had a $11,000 credit balance on May 31, what should be the account balance as of June 30? $20,500 $22,500 O $22,470 $21,470