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Business, 18.04.2020 01:05 jogose6

Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of 4,500 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Hall should show warranty expense of:
a. $13,500
b. $31,500
c. $0
d. $45,000

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