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In their first year of operation. Greenfox Company sells electronic appliances and offers a two-year warranty against defective merchandise. Greenfox Company estimates that warranty costs

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In their first year of operation. Greenfox Company sells electronic appliances and offers a two-year warranty against defective merchandise. Greenfox Company estimates that warranty costs will be 3% of sales during the year of sale and 6% during the year following the year of sale. Sales and actual warranty costs incurred are as follows: Compute the amount of estimated warranty liability that will appear in the Year 2 balance sheet

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