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Business, 05.05.2020 06:29 zavadskipaulo1oyt4og

"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 $30 million, and actual warranty expenditures are $200,000. What amount (if any) should Sony report as a liability at the end of the year?"

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