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In 2020, Mohamed's Mowers sells 1200 lawn mowers for $325 each and offers a 1-year warranty. The cost of each mower is $250 The company
In 2020, Mohamed's Mowers sells 1200 lawn mowers for $325 each and offers a 1-year warranty. The cost of each mower is $250 The company estimates that 4% of mowers sold will be returned under the warranty. Returned items will cost $150 to repair. The company pays cash for the repairs. Required: al Record the 2020 sales (and associated costs) at Dec 31, 2020. Assume all sales are cash. b) The company spent $6500 on repairs in 2020. Prepare the journal entry for these repairs.
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