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Synergy Appliances Sells Dishwashers with a 4-Year Warranty

Question 49

Multiple Choice

Synergy Appliances sells dishwashers with a 4-year warranty. In 2013, sales revenue for dishwashers is $85,000. The company estimates warranty expense at 4.5% of revenues. What is the 2013 warranty expense?


A) $3,825
B) $956.25
C) $0
D) $3,000

Correct Answer:

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