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A company sells electronics and with a warranty attached and estimates that they will experience an estimated 5% of sales for warranties. This period's sales
A company sells electronics and with a warranty attached and estimates that they will experience an estimated 5% of sales for warranties. This period's sales are going to be $200,000. The company should make the following entry to record the estimated warranty expense. debit estimated warranty liability $10,000; credit warranty expense $10,000 debit warranty expense $10,000; credit estimated warranty liability $10,000 debit estimated warranty liability $10,000; credit cash $10,000 debit warranty expense $10,000; credit sales $10,000
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