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During August, Boxer Company sells $346,000 in merchandise that has a one year warranty. Experience shows that Warranty expenses average about 3% of the selling

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During August, Boxer Company sells $346,000 in merchandise that has a one year warranty. Experience shows that Warranty expenses average about 3% of the selling price. The warranty liability account has a credit balance of $11,800 before adjustment. Customers returned merchandise for warranty repairs during the month that used $8,400 in parts for repairs. The entry to record the customer warranty repairs is: Multiple Choice Debit Warranty Expense $8,400; credit Estimated Warranty Liability $8,400. Debit Warranty Expense $10,380; credit Estimated Warranty Liability $10,380. Debit Estimated Warranty Liability $8,400; credit Parts Inventory $8,400. Debit Warranty Expense $6,980; credit Estimated Warranty Liability $6.980. Debit Estimated Warranty Liability $10,380: credit Parts Inventory $10,380. A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable Allowance for uncollectible accounts Net Sales $ 346,000 debit 690 debit 791,000 credit All sales are made on credit. Based on past experience, the company estimates that 0.3% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? Multiple Choice O O O O

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