Valix Finacc vol 2 Problem 1-29 to 31

Financial Accounting Volume 2 2008 Valix-Peralta
Chapter 1 Problem 1-29 to 31

Problem 1-29  Answer  D

Warranty expense (2,400 x 300)                                                                             720,000         

Problem 1-30  Answer  C                                        Problem 1-31  Answer  A

Warranty expense (3,000 x 80)       240,000          Warranty expense

Less: Actual warranty cost               70,000              (5% x 5,000,000)                 250,000

Warranty liability–June 30, 2008     170,000