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During August, Boxer Company sells $347,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 4% of the selling price. The warranty liability account has a credit balance of $10,900 before adjustment. Customers returned merchandise for warranty repairs during the month that used $7,500 in parts for repairs. The entry to record the estimated warranty expense for the month is:
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During August, Boxer Company sells $347,000 in merchandise that has a one year warranty. Experience...
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