Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. sandhill company offers a five-year warranty on it

Sandhill Company offers a five-year warranty on its products. Sandhill previously estimated warranty costs to...

60.1K

Verified Solution

Question

Accounting

Sandhill Company offers a five-year warranty on its products. Sandhill previously estimated warranty costs to be 3% of sales but in 2025 revised this estimate to 1% due to process and quality control improvements. Sandhill reported warranty costs of $81300 on $2710000 in 2023 and $96300 on $3210000 in 2024. Sales revenue for 2025 was $5420000. What is the adjustment to Retained Earnings in 2025 (ignore income tax considerations)? O $54200 O $120500 O $66300 O $0
image
Sandhill Company offers a five-year warranty on its products. Sandhill previously estimated warranty costs to be 3% of sales but in 2025 revised this estimate to 1% due to process and quality control improvements. Sandhill reported warranty costs of $81300 on $2710000 in 2023 and $96300 on $3210000 in 2024 . Sales revenue for 2025 was $5420000. What is the adjustment to Retained Earnings in 2025 (ignore income tax considerations)? $54200 $120500 $66300 $0

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

What is the pH of a solution prepared by mixing 60.0 mL of 0.20M potassium carbonate...

Finance
1.2K views

Mullet Technologies is considering whether or not to refund a $175 million, 15% coupon, 30-year bond...

Civil Engineering
1.2K views

What is the relationship of tree roots with dynamics?

Chemistry
1.2K views

Each of the following problems relates to the titration of either potassium hydrogen phthalate (KHP, KHC8H4O4)...

General Management
1.2K views

                                                                                                  Brainstorming Question What good or service has experienced a shift in demand or supply. Explain the reasons...

Biology
1.2K views

O Lipid storage disease with accumulation of sphingomyelin in the brain QUESTION 50 Which of...

Basic Math
1.2K views

Identify the appropriate property that describes the following statement:If m A=37 and m D=m A+...

Statistics
1.2K views

Graph 1 A BC a The mean is closest to b The median is closest...

Calculus
1.2K views

Vectors u and v are shown on the graph 10 9 8 7 6 543...

Accounting
1.2K views

The adjusted account balances of Johanna Ltd., at December 31, 2017, are as follows (10...

Accounting
1.2K views

19.Find an equation of the line that has slope n-andy-intercept b-s c. 85 d. Write...

Accounting
1.2K views

Carla Inc. charges an initial franchise fee of $84,000. Upon the signing of the agreement...