Carpenter Inc. had a balance of $88,000 in its quality-assurance warranty liability account as of...
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Accounting
Carpenter Inc. had a balance of $88,000 in its quality-assurance warranty liability account as of December 31, 2020. In 2021, Carpenter's warranty expenditures paid were $453,000. Its warranty expense is calculated as 1% of sales. Sales in 2021 were $40.8 million. What was the balance in the warranty liability account as of December 31, 2021?
a. $461,800
b. $496,000
c. 126,600
d. 43,000
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