Article 2 of the ucc deals with the sale of it does not deal with real property (real estate), services, or property such as stocks and bonds. thus, if the subject matter of a dispute is goods, the ucc governs. if it is real estate or services, the applies. if a contract involves both goods and services, the courts generally use test to determine whether to apply the ucc.

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?