Hall Company sells merchandise with a one-year warranty. In the current year, sales consist of 3,966 units. It is estimated that warranty repairs will average $10 per unit sold and 30% of the repairs will be made in the current year and 70% in the next year. On the current year's income statement, Hall should show warranty expense of O a $11,898 Ob. $27,762 O c. SO O d. $39,660

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