P3 offers a warranty on party tents that it sells. During 2021, P3 sold 1,000 tents at $800 each. P3 estimates that 5% of the tents will be brought back for warranty repairs at an average cost of $75 per repair. During 2021, 10 tents were repaired under warranty claims at a total cost of $845. (you do not need to record the sales transaction)

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