Please provide detailed steps to solve this problem, thanks.During 2006, Blass Co. introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to dollar sales are 4.55% within 12 months following sale and 5.45% in the second 12 months following sale. Sales and actual warranty expenditures for the years ended December 31, 2006 and 2007 are as follows:Actual WarrantySales Expenditures2006 $ 400,000 $18,0002007 500,000 30,000At December 31, 2007, Blass should report an estimated warranty liability ofa. 21,800b. 22,750c. 42,000d. 90,000the correct answer is C. 42,000.
papertowrite.com helps students cope with college assignments and write papers on a wide range of topics. We deal with academic writing, creative writing, and non-word assignments.