ABC sells products to customers with a warranty. Customers can return the products to ABC...
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ABC sells products to customers with a warranty. Customers can return the products to ABC for a free replacement within days of purchase. During April ABC sold products to customers. During May, ABC sold products to customers. Based on past sales, ABC estimates that of all products sold will be returned for a free replacement. The products cost ABC $ to produce and they are sold for $ per item. During April, products were returned and during May, items were returned. As of March ABC's Warranty Liability had a credit balance of $
What is the impact on the May income statement from the sale of the products calculate the net impact of any revenues minus any expenses
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