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Arena Company_warranty expenses Payable

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Question

During August, Arena Company sells $363,000 in product that has a one year warranty. Experience shows that warranty expenses average about 4% of the selling price. The warranty liability account has a balance of $13,500 before adjustment. Customers returned product for warranty repairs during the month that used $10,100 in parts for repairs. The entry to record the customer warranty repairs is

 

Paper#80747 | Written in 18-Jul-2015

Price : $22
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