Homework answers / question archive / At the beginning of 2021, Angel Corporation began offering a 1-year warranty on its products

At the beginning of 2021, Angel Corporation began offering a 1-year warranty on its products

Accounting

Share With

At the beginning of 2021, Angel Corporation began offering a 1-year warranty on its products. The warranty program was expected to cost Angel 5% of net sales. Net sales made under warranty in 2021 were $240 million. Five percent of the units sold were returned in 2021 and repaired or replaced at a cost of $10.6 million. The amount of warranty expense in Angel's 2021 income statement is: Multiple Choice + O $10.6 million O $36.0 million $9.2 million 0 $12.0 million