A Plus Appliances sells dishwashers with a four-year warranty.In 2019,sales revenue for dishwashers is $94,000.The company estimates warranty expense at 4.5% of revenues.What is the total estimated warranty payable of A Plus Appliances as of December 31,2019? A Plus Appliances began operating in 2019.(Round your final answer to the nearest dollar.)
A) $4230
B) $1058
C) $1548
D) $3318

Question

Quizplus · Accepted Answer

The total estimated warranty payable is calculated as 4.5% of the sales revenue. Therefore, $94,000 * 4.5% = $4,230.

A Plus Appliances Sells Dishwashers with a Four-Year Warranty