$400,000 in fiscal 2010 and 2011 respectively. It paid $5,000 for materials and labour to make warrantyrelated repairs in 2010. What amount will be recorded as warranty expense in 2010?
A. $15,000
B. $20,000
C. $21,000
D. $26,000
Answer:A
$400,000 in fiscal 2010 and 2011 respectively. It paid $5,000 for materials and labour to make warrantyrelated repairs in 2010. What amount will be recorded as warranty expense in 2010?
A. $15,000 B. $20,000 C. $21,000 D. $26,000
Explanation: A) $300,000 × 5% = $15,000