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Joe's Audio Shoppe sold 100 headphones for $50 each. He offers a three-year assurance-type warranty, and expects 2% of the headphones to require repairs in

Joe's Audio Shoppe sold 100 headphones for $50 each. He offers a three-year assurance-type warranty, and expects 2% of the headphones to require repairs in the first year of the warranty, 3% in the second year, and 10% in the third year. The average warranty claim costs $10. 


What will Joe record in the first year as warranty expense? 

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