Correct calculator company offers a one year warranty on its products. During

Correct calculator company offers a one year warranty on its products. During 2000 it sold 80000 calculators and estimates ten percent will be returned for
warranty service. The average cost to repair a product is $10. During 2000 7500 caluculators were repaired.

1) What is the year end balance of warranty expense?

a) $75000

b) $80000

c) $5000

d) None of the above

2) What is the year end balance of estimated warranty liability?

a) $5000

b) $80000

c) $75000

D) none of the above

3) where will estimated warranty liability be reported on the balance sheet?