Sony introduces a new compact music player to compete with apple’s ipod that carries a two-year warranty against manufacturer’s defects. based on industry experience with similar product introductions, warranty costs are expected to be approximately 2% of sales. by the end of the first year of selling the product, total sales are $29.8 million, and actual warranty expenditures are $180,000. what amount (if any) should sony report as a liability at the end of the year?
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Sony introduces a new compact music player to compete with apple’s ipod that carries a two-year warr...
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