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8. Right Medical introduced a machine that carries a five-year warranty against manufacturer's defects. Based on industry experience, warranty costs are expected to 1% of
8. Right Medical introduced a machine that carries a five-year warranty against manufacturer's defects. Based on industry experience, warranty costs are expected to 1% of sales. Sales were $150 million and actual warranty expenditure were $200,000 for the first year of selling the product. Compute the amount (if any) that Right should report as a liability at the end of the year
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