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Honest Computers Sells Computers with a 6-Month Warranty

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Honest Computers sells computers with a 6-month warranty.In January,the company sold 35,000 computers at $2,600 each and 1,500 computers were returned for repairs.The total repair costs amounted to $185,000.It is estimated that 3% of all units sold will need repairs under warranty at an estimated cost of $300 per unit.Prepare the journal entry to record warranty expense for January.


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Texas A&M

A public research university in College Station, Texas, known for its strong emphasis on agriculture, engineering, and military science.

L.L. Bean, Inc.

An American retailer recognized for its outdoor recreation merchandise and clothing, known for its customer service and satisfaction guarantee.

Responsiveness

The speed and efficiency with which an organization or individual reacts to changes or customer needs.

Texas A&M

A renowned public research university located in College Station, Texas, known for its contributions to education, research, and military service.

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