A company sells computers at a selling price of $1,800 each.Each computer has a 2 year warranty that covers replacement of defective parts.It is estimated that 2% of all computers sold will be returned under the warranty with an average cost of $150 each.During November,the company sold 30,000 computers and 400 computers were serviced under the warranty during November at a total cost of $55,000.The balance in the Estimated Warranty Liability account at November 1 was $29,000.What is the company's warranty expense for the month of November?
A) $26,000
B) $45,000
C) $55,000
D) $60,000
E) $90,000
Correct Answer:
Verified
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