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Estimated warranty liability savory co sold 171000 of

Estimated Warranty Liability Savory Co. sold $171,000 of equipment during May under a two-year warranty. The cost to repair defects under the warranty is estimated at 6.0% of the sales price. On October 10, a customer required a $261 part replacement, plus $173 of labor under the warranty.

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Accounting Basics: Estimated warranty liability savory co sold 171000 of

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