Estimated warranty payable of $ 1,300 at the end of 2017. during 2018, roy electric made sales of $ 140,000 and expects product warranties to cost the company 1 percent of the sales. during 2018, roy electric paid $ 2,300 for warranties. what is roy electric's estimated warranty payable at the end of 2018?
a. $ 2,400
b. $ 1,400

$400

Step-by-step explanation:

Given at the end of 2017 estimated warranty payable is $ 1,300

Also given that During 2018, Roy Electric made sales of $ 140,000 and expects product warranties to cost the company 1 percent of the sales

The warranties made in the year 2018 is

Given that the company already paid $2300 warranties so

Total warranties payable are 1300 + 1400 - 2300 = $400