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On 30 April 20x2, Neuman Ltd. sells a product to a customer for $684,000. The product carries a one-year assurance warranty. Neuman management estimates that
On 30 April 20x2, Neuman Ltd. sells a product to a customer for $684,000. The product carries a one-year assurance warranty. Neuman management estimates that the probable cost of fulfilling the warranty will be $57,000. Between 1 May and 31 December 20x2, the actual warranty cost was $22.800. On 31 December 20X2, management decides that the probable additional warranty cost will be no more than $15,100. Between 1 January and 30 April 20X3, the additional cost was $13,100. Required: 1. Prepare the entries concerning the sale and the warranty for 30 April 20x2 through 30 April 20X3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
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