Multiple Choice
Garrett Company sells merchandise with a one year warranty. In 2012, sales consisted of 3,500 units. It is estimated that warranty repairs will average $15 per unit sold, and 30% of the repairs will be made in 2012 and 70% in 2013. In the 2012 income statement, Garrett should show warranty expense of
A) $36,750
B) $15,750
C) $52,500
D) $0
Correct Answer:
Verified
Correct Answer:
Verified
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