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On January 1, 2020 Allen Company sold a customer a three year extended warranty for $255 with the purchase of his new appliances. Alan incurred
On January 1, 2020 Allen Company sold a customer a three year extended warranty for $255 with the purchase of his new appliances. Alan incurred $3840 in warranty expenses this year for all it's outstanding extended warranties for all customers, of which $45 was the result of a claim the company submitted in October for the repair of the new Device. Prepare Allen company's adjusting entry on December 31, 2020 related to the company's original warranty purchase.
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