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usa, a tire manufacturer, guarantees its tires against defects for five years or 60,000 miles,...

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Accounting

USA, a tire manufacturer, guarantees its tires against defects for five years or 60,000 miles, whichever comes first. Suppose USA can expect warranty costs during the five-year period to add up to of sales. Assume that a USA dealer in Denver, Colorado, made sales of during . USA received cash for % of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totaled during

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