Business, 07.11.2019 23:31 EggWithWheels

Ez wheels corporation manufactures kick scooters. the company offers a one-year warranty on all scooters. during 2017, the company recorded net sales of $1,900 million. historically, about 4% of all sales are returned under warranty and the cost of repairing and or replacing goods under warranty is about 30% of retail value. assume that at the start of the year ez wheels’ balance sheet included an accrued warranty liability of $16.3 million and at the end of the year, the accrued warranty liability balance was $12.4 million.

how much did ez wheels pay during the year to repair and or replace scooters under warranty?

select one:

a. 12.4 million

b. 22.8 million

c. 76.0 million

d. 26.7 million

e. none of the above

Answers: 2

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Ez wheels corporation manufactures kick scooters. the company offers a one-year warranty on all scoo...