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Blazer Company sells merchandise with a 1-year warranty. In Year 1, sales consisted of 2,600...

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Accounting

Blazer Company sells merchandise with a 1-year warranty. In Year 1, sales consisted of 2,600 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in Year 1 and 70% in Year 2. In the income statement for Year 1, Blazer Company should show warranty expense of a. $26,000. O b. $7,800. O c. $18,200. O d. $0.
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Binter Company cells merchandise with a 1-year warranty. In Year 1, sales consisted of 2,600 units. IR is estimated that warranty repeirs will average s10 per unit sold, and 30% of the repoin will be made in Year 1 and 70% in Year 2 . In the income statoment for Yoar 1, Elazer Company should show warranty expensh ot a. $26,000 b. $7,800 c. $18,200. d. 50

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