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Buy Best Company sells personal computers for $2,300 each. The price includes a two-year warranty. During 2020, the company sells 600 computers. On the basis
Buy Best Company sells personal computers for $2,300 each. The price includes a two-year warranty. During 2020, the company sells 600 computers. On the basis of past experience, the warranty costs are estimated to be $150 per computer. The actual warranty costs paid by Buy Best during 2020 were $45,000. Prepare general journal entries to record the estimated warranty expense and the warranty payments during 2020.
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