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A possible product defect that is reasonably possible and

Household Solutions manufactures kitchen storage products. During the year, the company became aware of potential costs due to

(1) A possible product defect that is reasonably possible and can be reasonably estimated,

(2) A safety hazard that is probable and cannot be reasonably estimated, and

(3) A new product warranty that is probable and can be reasonably estimated.

1. Which, if any, of these costs should be accrued?

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Accounting Basics: A possible product defect that is reasonably possible and

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Accounting Basics: A possible product defect that is reasonably possible and

Reference No:- TGS01299494

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