Sales made in fiscal 2012 for $50,000,000 include a 5 year warranty coverage.The estimated cost for warranty is expected to be 2% for the first 4 years and 5% for the last year.Determine how much warranty expense will be recorded in fiscal 2012.
A)1,000,000
B)4,000,000
C)5,000,000
D)6,500,000

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The Answer of Sales made in fiscal 2012 for $50,000,000 include a 5 year warranty coverage.The estimated cost for warranty is expected to be 2% for the first 4 years and 5% for the last year.Determine how much warranty expense will be recorded in fiscal 2012.
A)1,000,000
B)4,000,000
C)5,000,000
D)6,500,000

Sales Made in Fiscal 2012 for $50,000,000 Include a 5