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A company sells computers for $1,500 each. Each computer has a two-year warranty that covers replacement of defective parts. It is estimated that 2% of
A company sells computers for $1,500 each. Each computer has a two-year warranty that covers replacement of defective parts. It is estimated that 2% of all computers sold will be returned under the warranty with an average cost of $184 each. During November, the company sold 47,000 computers;. 570 computers were serviced under the warranty during November at a total cost of $72,000. The balance in the Estimated Warranty Liability account at November 1 was $37,500. What is the company's warranty expense for the month of November? Multiple Choice $86,480 $72,000 $34,500 $172,960 $104,880
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