Posted by Renee on .
Blankenship Company estimated that its warranty expense would be $4,250 for the current year. During the year Blankenship paid $920 to repair merchandise that was returned by customers.
a) What is the amount of warranty expense for the current year?
b) If this is the first year of operations, what is the amount of warranty liability that will be shown on the balance sheet at the end of the year?