medium · Financial Accounting liabilities-bonds-payable
Northbridge Appliances records a warranty accrual of $32,400 in Q1 based on sales. In Q2, the company processes actual claims using $15,000 in parts from inventory and $8,000 in cash for labor.
What is the impact on Q2 Net Income from these actual claims?
- $15,000 reduction
- $9,400 reduction
- $23,000 reduction
- $0
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