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Bon Nebo Co. sells merchandise with a one-year warranty. In the current year, sales consist of 7,000 units. It is estimated that warranty repairs will
Bon Nebo Co. sells merchandise with a one-year warranty. In the current year, sales consist of 7,000 units. It is estimated that warranty repairs will average $15 per unit sold and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Bon Nebo Co. should show warranty expense of $105,500 S31.500 $73,500 $90.000
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