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In 2019, A company sold a product for 800000 and received cash. The company sells all products with a warranty up to three years. The
In 2019, A company sold a product for 800000 and received cash. The company sells all products with a warranty up to three years. The company expects the cost of the warranty to be 3% of the sale.
A) Record transactions on t-accounts for the sale and the cost oft he warranties
B) At the beginning of 2019, the warranty was at 11600. In the same year, returns because of the warranty was at 20400 of which 4500 for the year 2019. Record these transactions on t-accounts
C) What is the status of the warranty account at the end of 2019?
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