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ABC manufactures and sells products. On average, warranty costs are 1% of total sales. During...

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Accounting

ABC manufactures and sells products. On average, warranty costs are 1% of total sales. During 2022, the company's first year of operations, total sales were $600,000 and actual warranty costs were $7,500. What is the total warranty expense that ABC should recognize for 2022?
$6,000
$1,500
$7,500
$13,500
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