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A company sells products with a 3-year warranty. In 2019, they sold $1000000 of products and in 2020 sold $1200000. The estimated warranties based on
A company sells products with a 3-year warranty. In 2019, they sold $1000000 of products and in 2020 sold $1200000. The estimated warranties based on Sales Dollars are: 2% in year 1, 2% in year 2 and 4% in year 3 after the sale
- Make the adjusting journal entry to accrue 2019 warranties.
- Assume the expenditure for actual warranties for 2019 were $36000 and for 2020 were $78000. determine the balance in warranty liability account on the balance sheet of 12.31.2020
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