Samsung’s 2017 annual report discloses the warranty information below. Like Apple, Samsung offers warranties on its products.
Required
1. What amount of warranty expense did Samsung record in 2017? What amount of warranty claims did Samsung pay in 2017?
2. Access Apple’s report in Appendix A and locate “Accrued Warranty and Indemnification” on page A-9 of its notes. What amount of warranty expense did Apple record during 2017? What amount of warranty claims did Apple pay in 2017?
3. Using answers from parts 1 and 2, which company was more accurate in estimating warranty claims for 2017?
