In May, Fish Nets, Inc. sold 8,000 nets with a three-month warranty for $10 each...
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Accounting
In May, Fish Nets, Inc. sold 8,000 nets with a three-month warranty for $10 each on account. Fish Nets estimates that warranty costs will be approximately $100 on these sales. The actual warranty cost for the sales made in May was $30 in June and $50 in July. Fish Nets should ________.
A record Warranty expense of $100 in May
B record Warranty expense of $30 in June
C report Allowance for uncollectible accounts of $(100) in May
D report Allowance for uncollectible accounts of $(30) in June
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