Talks-a-lot, inc. sells cell phones to customers and expects that 10% of phones sold will be returned for repair under its warranty program. the average repair cost is $71 per phone. for 2021, talks-a-lot has sold 550 cell phones and has repaired 11 of them as of december 31, 2021. what amount of warranty liability should be reported at december 31, 2021?
Product warrant liability to be reported as on 31.12.2021* is $3.124
*The procedures are attached in a microsof excel document.
This amount will be recognized as a liability only if product warranty amount can be rmeasured reliabily and there is probability that there will be an outflow of funds.
almost done 23 out of 25
i think you have to let the moderators that you want your old account to be activated.