Smart art is a new business. during its first year of operations, credit sales were $44,000 and collections from credit sales were $32,000. one account for $625 was written off. management uses the percent-of-sales method to account for bad debts expense and estimates 2% of credit sales to be uncollectible. what is the balance of accounts receivable at the end of the first year?

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?