The more common pricing terms of shipment have been standardized by the International Chamber of Commerce and codified as which are accepted by governments, legal authorities and practitioners worldwide for the interpretation of the most commonly used terms in international trade

Right medical introduced a new implant that carries a five-year warranty against manufacturer’s defects. based on industry experience with similar product introductions, warranty costs are expected to approximate 2% of sales. sales were $8 million and actual warranty expenditures were $42,750 for the first year of selling the product. what amount (if any) should right report as a liability at the end of the year?