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Exercise 9 - 7 A ( Algo ) Effect of warranty obligations and payments on financial statements LO 9 - 4 The Chair Company provides
Exercise A Algo Effect of warranty obligations and payments on financial statements LO
The Chair Company provides a day partsandlabor warranty on all merchandise it sells. The Chair Company estimates the
warranty expense for the current period to be $ During this period, a customer returned a product that cost $ to repair.
Required
a Show the effects of these transactions on the financial statements using a horizontal statements model. Use a to indicate increase
or a for decrease. In the Statement of Cash Flows column, indicate whether the item is an operating activity OA investing activity
IA or financing activity FA Columns for events that have no effect on any of the elements should be left blank.
Note: Not all cells will require an input.
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