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On Dec. 1, 2022, a dealer sells a car for $20,000 with a maximum one-year or 12,000-mile warranty covering parts. Past experience indicates warranty expenses
- On Dec. 1, 2022, a dealer sells a car for $20,000 with a maximum one-year or 12,000-mile warranty covering parts. Past experience indicates warranty expenses average 5% of a cars selling price. On Jan. 9, 2023, the customer returns the car for repairs. The dealer replaces parts costing $400. Please record the journal entries related to these events.
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