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SAT, 03.12.2021 19:20 eprice32315

Starkey factory provides a 2-year assurance-type warranty with one of its products which was first sold in 2020. Starkey sold $1,000,000 of products subject to the warranty. Starkey expects $125,000 of warranty costs over the next 2 years. In 2020, starkey spent $70,000 servicing warranty claims. What amount of warranty expense should starkey record in 2020?.

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