Business, 03.08.2021 01:40 Nayblue2002
Flag prepares monthly financial statements. Flag promises the customers a new model ship if they are unhappy at any time in the first 2 years after the purchase. Flag estimates that 6% of the ships need replaced, on average. During May Flag Inc. sells 1,000 model ships for $50 each. The cost of each ship to Flag is $20. During May- Flag replaces 40 ships that were sold in prior months and were under warranty. What will Flag recognize as warranty expense for May?
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Flag prepares monthly financial statements. Flag promises the customers a new model ship if they are...
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