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The Air Fry Superstore sold 8000 air fryers in 2020 at $104/each. During 2020, they spent $11,000 servicing the 4 year warranties that come with
| The Air Fry Superstore sold 8000 air fryers in 2020 at $104/each. During 2020, they spent $11,000 servicing the 4 year warranties that come with the fryers. |
| Assume that the Air Fry Superstore estimates the service warranties will have a total cost of $80,000 over 4 years. |
| Using the expense warranty approach, prepare the relevant 2020 journal entries based on the information above. |
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Principles of Auditing and Other Assurance Services
Authors: Ray Whittington, Kurt Pany
19th edition
978-0077804770, 78025613, 77804775, 978-0078025617
