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Brief Exercise 11-6 On December 1, Bruney Company introduces a new product that includes a one-year warranty on parts. In December, 2,700 units are…
Brief Exercise 11-6
On December 1, Bruney Company introduces a new product that includes a one-year warranty on parts. In December, 2,700 units are sold. Management believes that 5% of the units will be defective and that the average warranty costs will be $85 per unit.
Prepare the adjusting entry at December 31 to accrue the estimated warranty cost.
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