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Question 5 : Gadget C o . Sells $ 4 , 5 0 0 , 0 0 0 worth of gadgets during 2 0 2

Question 5: Gadget Co. Sells $4,500,000 worth of gadgets during 2024. At the end of the year, they estimate that they will pay warranties on 4% of all sales. Make the journal entry at the end of 2024 to recognize the warranty estimate.
Now assume in the following year a customer gets a $500 warranty replacement, make the necessary entry.
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