ACCY 303 January 30, 2023 Class #4: Warranties; Practice • Underestimated and overestimated warranty reserve • Warranties—Ford vs General Motors (GM) • Warranty practice • Liabilities classification practice • Subsequent events practice • Homework 1 Question 5 (subsequent events) Connect Quiz is due Wednesday, 2/1, 8 am Enroll in a group on Canvas by Monday, 2/6
Underestimated Warranty Reserve • 2019 sales $3 million • Products carry two years of warranty • The expected cost of future warranty claims is 1% of sales • Actual claims:2019$ 10,000 2020$ 19,000 2021$ 6,000
Overestimated Warranty Reserve • 2019 sales $3 million • Products carry two years of warranty • The expected cost of future warranty claims is 1% of sales • Actual claims:2019$ 10,000 2020$ 12,000 2021$ 2,000
Expert's Answer
Chat with our Experts
Want to contact us directly? No Problem. We are always here for you
Your future, our responsibilty submit your task on time.
Order Now
Get Online
Assignment Help Services
