At the beginning of 2016, Alex Corporation began offering a two-year warranty on its products....
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At the beginning of 2016, Alex Corporation began offering a two-year warranty on its products. The warranty program was expected to cost Alex 4% of net sales. Net sales made under warranty in 2016 were $180 million. Fifteen percent of the units sold were returned in 2016 and repaired or replaced at a cost of $5.3 million. The amount of warranty expense on Alex's 2016 income statement is: provide detail formula and steps please
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