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Novak Corp. uses the revenue approach to account for warranties. During 2023, the company sold...

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Accounting

Novak Corp. uses the revenue approach to account for warranties. During 2023, the company sold $739000 worth of products, all of
which carried a two-year warranty (included in the price). It was estimated that 2% of the selling price represented the warranty
portion, and that 35% of this related to 2023, and 65% to 2024. Assuming that Novak incurred costs of $6000 to service the
warranties in 2024, what is the net warranty revenue (revenue minus warranty costs) for 2024?
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