During its first year of operations Keene Limited had sales of $76,500. The company offers...
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Accounting
During its first year of operations Keene Limited had sales of $76,500. The company offers a 2- year limited warranty on all sales and expects that warranty costs for the first year will average 0.5% of sales with an additional 1.5% in the second year. During the current year the company spent $1,200 on warranty repairs.
Which journal entry is correct to record the actual money spent on repairs?
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