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In 2020, Hydrogen Corp

Question 91

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In 2020, Hydrogen Corp. began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows: In 2020, Hydrogen Corp. began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows: Hydrogen uses the expense approach to account for warranties. What is the estimated warranty liability at the end of 2021? A) $ 73,500 B) $ 43,500 C) $ 28,500 D) $ 12,000 Hydrogen uses the expense approach to account for warranties. What is the estimated warranty liability at the end of 2021?


A) $ 73,500
B) $ 43,500
C) $ 28,500
D) $ 12,000

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