What power should show warranty expense


Power Company sells merchandise with a one year warranty. In 2009, sales consisted of 1,600 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2009 and 70% in 2010. In the 2009 income statement, what Power should show warranty expense ?

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Accounting Basics: What power should show warranty expense
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