Grouper Ltd. manufactures a line of amplifiers that carry a three-year warranty against defects. Based...
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Grouper Ltd manufactures a line of amplifiers that carry a threeyear warranty against defects. Based on experience, the estimated warranty costs related to dollar sales are as follows: first year after sale of sales; second year after sale of sales; and third year after sale of sales. Sales and actual warranty expenditures for the first three years of business were: a Calculate the amount that Grouper should report as warranty expense on its income statement and as a warranty liability on its December SFP using the assurancetype warranty expensebased approach Assume that all sales are made evenly throughout each year and that warranty expenditures are also evenly spaced according to the rates above. Warranty expense $ Warranty liability $ 
Grouper Ltd manufactures a line of amplifiers that carry a threeyear warranty against defects. Based on experience, the estimated
warranty costs related to dollar sales are as follows: first year after sale of sales; second year after sale of sales; and third
year after sale of sales. Sales and actual warranty expenditures for the first three years of business were:
a Calculate the amount that Grouper should report as warranty expense on its income statement and as a warranty liability on
its December SFP using the assurancetype warranty expensebased approach Assume that all sales are made evenly
throughout each year and that warranty expenditures are also evenly spaced according to the rates above.
Warranty expense $
Warranty liability $
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