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Prist Co. had not provided a warranty on its products but competitive pressures forced management to add this feature at the beginning of 2016. the
Prist Co. had not provided a warranty on its products but competitive pressures forced management to add this feature at the beginning of 2016. the cost of the warranty program was estimated at 0.3% of sales. 2016 sales totaled 6,900,000. Actual cost of servicing products under warranty totaled 19,400.
- Use the horzontal method to show the effect of having the program in 2016
- What type of accrual adjustment should be made at the end of 2016?
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