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The company has been recording warranty expense as it has been paid. The company first...

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Accounting

The company has been recording warranty expense as it has been paid. The company first warranted its products, 4 years ago, beginning 1/1/19. Warranty costs paid by year are listed below: Year Warranty costs paid 2019 $4,000 2020 $6,000 2021 $10,000 2022 $11,000 After exploring the timing of sales during the year and what seems like the company will pay given experience, you compute the following warranty liabilities at each year end. Original Sale year

Estimated liability at 12/31/19

Estimated liability at 12/31/20

Estimated liability at 12/31/21

Estimated liability at 12/31/22 2019 $4,000 $1,000 0 0 2020 7,000 $1,000 0 2021 8,000 $2,000 2022 3,000

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