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Arc Digital Starts the Year with Balances in Its Estimated

question 51

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Arc Digital starts the year with balances in its Estimated warranty payable account and Warranty expense account as shown below. During the year, there were $190,000 of sales and $3,200 of warranty repair payments. Arc Digital estimates warranty expense at 1.5% of sales. Arc Digital starts the year with balances in its Estimated warranty payable account and Warranty expense account as shown below. During the year, there were $190,000 of sales and $3,200 of warranty repair payments. Arc Digital estimates warranty expense at 1.5% of sales.   At the end of the year, what was the balance in the Warranty expense account? A) $2,850 debit B) $1,250 credit C) $3,200 debit D) $1,420 debit At the end of the year, what was the balance in the Warranty expense account?


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