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Right Medical introduced a new implant that carries a five-year warranty against manufacturers defects. Based on industry experience with similar product introductions, warranty costs are
Right Medical introduced a new implant that carries a five-year warranty against manufacturers defects. Based on industry experience with similar product introductions, warranty costs are expected to approximate 1% of sales. Sales were $32 million and actual warranty expenditures were $25,750 for the first year of selling the product. What amount (if any) should Right report as a liability at the end of the year? (Enter your answers in whole dollars.) |
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