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a company estimates that warranty expense will be 2% of sales. the company's sales for the current period are $170,000. the current period's entry to record the warranty expense is:

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arshikhan8123

The current period's entry to record the warranty expense is $3,520. The rule: Debit increases assets and expenses while credit reduces it.

What is meant of warranty?

A warranty is a product manufacturer or service provider's documented guarantee of grade as promised to a buyer. Warranties provide buyer with legally-ensured service replacement or correction of issues insofar as the warranty stipulates in its conditions, for the time of its term.

What is difference between guarantee and warranty?

The guarantee acts as a promise made by manufacturer. The warranty, on other hand, is a written assurance. The warranty only covers product, whereas the guarantee covers product, service, people, and consumer satisfaction.

What are the 3 types of warranties?

Types of Warranties are :-

  • Express Written Warranty. If a latest or used consumer product comes with an express written warranty, you have the right to rely on what it says.
  • Express Oral Warranty.
  • Implied Warranty

Learn more about warranties here :-  https://brainly.com/question/14227081

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