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Use the following information to answer the next three questions.
Bruges Electronics Inc.offers one model of laptop computer for £1000 and a two-year warranty for £250.The retailer, as part of a Boxing Day promotion, offers a limited-time offer for the laptop, including delivery and the two-year warranty for £1,180.The cost of the computer to Bruges is £700.Any warranty repairs are assumed to be done ratably over time.Bruges accounts for transactions using the customer consideration model.
In the first twelve months following the sale, Bruges incurred £980 of costs servicing the computers under warranty.
-In the first twelve months following the sale, Bruges would reduce the Contract liability - warranty account by
Olfactory Epithelium
The specialized tissue within the nasal cavity responsible for detecting odors via sensory cells.
Semicircular Canal
Part of the inner ear involved in maintaining balance and sensing head rotation.
Cochlea
A spiral-shaped, fluid-filled inner ear structure that is responsible for converting sound waves into nerve impulses to be sent to the brain.
Cochlear Implant
A medical device that bypasses damaged structures in the inner ear and directly stimulates auditory nerve fibers to provide a sense of sound to individuals who are profoundly deaf or severely hard-of-hearing.
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