Question: during 2016 green thumb company introduced a new line of...
During 2016 Green Thumb Company introduced a new line of garden
shears that carry a two-year warranty against defects. Experience
indicates that warranty costs should be 2% of net sales in the year
of sale and 3% in the year after sale. Net sales and actual
warranty expenditures were as follows:
|Actual warranty expenditures|
At December 31, 2017, Green Thumb should report as a warranty liability of: