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Business, 01.07.2019 17:10 Jasten

Acompany sold $12,000 worth of trampolines with an extended warranty. it estimates that 2% of these sales will result in warranty work. the company should: a. consider the warranty expense a remote liability since the rate is only 2%. b. recognize warranty expense at the time the warranty work is performed. c. recognize warranty expense and liability in the year of the sale. d. consider the warranty expense a contingent liability. e. recognize warranty liability when the company purchases the trampolines.

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Acompany sold $12,000 worth of trampolines with an extended warranty. it estimates that 2% of these...
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