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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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