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During the current year, a company sold 1 0 , 0 0 0 units of a product that was covered by a two - year
During the current year, a company soldunits
of a product that was covered by a twoyear assurance warranty
against defects. Experience indicates that approximately of
the units sold will require warranty repairs, at an average cost of
$per unit. The actual costs incurred during the year for
repairs under the warranty totalled $ What amount of
liability if any should be reported on the companys statement of
financial position at the end of the current year?
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