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Vaughn Corporation sells DVD players. The corporation also offers its customers a 4-year warranty contract. During 2017, Vaughn sold 20,000 warranty contracts at $111each. The
Vaughn Corporation sells DVD players. The corporation also offers its customers a 4-year warranty contract. During 2017, Vaughn sold 20,000 warranty contracts at $111each. The corporation spent $190,000servicing warranties during 2017, and it estimates that an additional $950,000will be spent in the future to service the warranties.
How do I derive at the Unearned warranty revenue and the warranty revenue?
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