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ABC Shirts Company offers a one-year warranty to replace any defective shirts sold. The company estimates that 4% of all shirts sold will be defective.

ABC Shirts Company offers a one-year warranty to replace any defective shirts sold. The company estimates that 4% of all shirts sold will be defective. Total shirts sales for 2023 were $200,000. What journal entry should ABC record in 2023 to record the warranty expense and related liability for the year

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