Computer Wholesalers restores and resells notebook computers. It
originally acquires the notebook computers from corporations
upgrading their computer systems, and it backs each notebook it
sells with a 90-day warranty against defects. Based on previous
experience, Computer Wholesalers expects warranty costs to be
approximately 6% of sales. Sales for the month of December are
$600,000. Actual warranty expenditures in January of the following
year were $13,000.
4. What is the balance in the Warranty
Liability account after the entries in Part 2
and 3?
Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corpora
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