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Research Company sells merchandise with a one year warranty. In the current year, sales consisted of 2,044 units. It is estimated that warranty repairs will
Research Company sells merchandise with a one year warranty. In the current year, sales consisted of 2,044 units. It is estimated that warranty repairs will average $11 per unit sold, and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Research should show warranty expense of
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$6,745
$22,484
$15,739
$0
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