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If, at the time of sale of one of its products, a company also sells a customer (for cash) a two year extended warranty beyond

If, at the time of sale of one of its products, a company also sells a customer (for cash) a two year extended warranty beyond the one year manufacturers assurance warranty, how should the company record the cash received for the extended warranty?

a. Include as a warranty revenue

b. Include as a sales revenue

c. Include as unearned warranty revenue

d. none of the above

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