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A Company Sells Computers with a Six-Month Warranty

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A company sells computers with a six-month warranty.In January,the company sold 100,000 computers at $1,750 each and 1,500 computers were turned in for repairs during that same month.The total repairs amounted to $185,000 costs from the computer parts inventory.It is estimated that 2% of all units sold will need repairs under warranty at an estimated cost of $200 per unit.Prepare the journal entries to record (a) estimated warranty expense for January and (b) warranty repair costs for January.


Definitions:

Social Identity

A person's sense of who they are based on their group memberships, such as national, religious, or occupational social groups.

Social Group

A collection of individuals who interact with each other based on shared interests, backgrounds, or purposes forming a cohesive unit.

Looking Glass Self

A concept in sociology that suggests an individual's self-concept is shaped by how they believe others perceive them.

Objective Reality

Refers to the existence of an external, independent reality that is not influenced by individual perceptions or beliefs.

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