A company sold $12,000 worth of bicycles with an extended warranty. The company's experience is...
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Accounting
A company sold $12,000 worth of bicycles with an extended warranty. The company's experience is that warranty expense averages 2% of sales. The company should:
A.) Recognize warranty expense and liability in the year of the sale
B.) Recognize warranty expense at the time the warranty work is performed
C.)Consider the warranty expense a remote liability since the rate is only 2%
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