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At the beginning of 2021, Angel Corporation began offering a two-year warranty on its products. The warranty program was expected to cost Angel 9% of net sales. Net sales made under warranty in 2021 were $193 million. Fifteen percent of the units sold were returned in 2021 and repaired or replaced at a cost of $4.80 million. The amount of warranty expense on Angel's 2021 income statement is:
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At the beginning of 2021, Angel Corporation began offering a two-year warranty on its products. The...
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