Scully, Inc. manufactures home surveillance systems and provides a one-year warranty for all products sold. The warranty is an integral part of the sale. The company estimates that the warranty cost is $220 per unit sold. If during 2023, the company sold 25,000 units for a total revenue of $30 million and paid warranty claims of $4.5 million, what amount of warranty expense would the company recognize for the year-ended December 31, 2023? a. $10 million b. $4.5 million c. $5.5 million d. $1 million Question 7 Not yet answered Points out of 4.00 Remove flag Question text During 2023, Foxs Frosted Flakes Company offers its customers a cereal bowl if they send in 4 boxtops from its cereal boxes and $1. The company estimates that 60% of the boxtops will be redeemed. In 2023, the company sold 600,000 boxes of its cereal and customers redeemed 350,000 boxtops. The company originally purchased the bowls for $3 each. The bowls cost the company $.25 each to ship to the customers. What liability amount for outstanding premiums should the company report at December 31, 2023? a. $5,625 b. $22,500 c. $140,625 d. $7,500