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Your Company sells goods to customers with a three-year warranty. During 2020, Your Company sold $750,000 from its inventory. On December 31, 2020, Your Company

Your Company sells goods to customers with a three-year warranty. During 2020, Your Company sold $750,000 from its inventory. On December 31, 2020, Your Company made the appropriate year-end adjustment to record the estimated of warranty expense based on 3% of the cost of goods sold during the year. Which of the following correctly shows the 2020 adjustment to record warranty expense?

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