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Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of 4,289 units. It is estimated that warranty repairs will average
Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of 4,289 units. It is estimated that warranty repairs will average $16 per unit sold, and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Hall should show warranty expense of a.$68,624 b.$20,587 c.$48,037 d.$0
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