Question - Stanley Company manufactures lamps. They provide one-year warranties on all of their products. In 20X2, they had $450,000 in net sales. Stanley Company estimates that 2.5% of net sales will require warranty repairs. The estimated warranty payable account had a balance of $13,500 on January 1, 20X2. Throughout the year, Stanley Company paid $14,100 of warranty claims. What will Stanley Company report for estimated warranty payable on December 31, 20X2?
$11,250
$10,650
$24,750
$14,100