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Sophco Inc sells products that come with a warranty. In the past management has found...

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Accounting

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Sophco Inc sells products that come with a warranty. In the past management has found that 2% of the products have been returned for replacement. In the month of May the number of units sold was 5,000. The cost of repairing the product is estimated to be $5. What is the amount of the liability to accrue for product warranty expense. A. $250 B. $500 C. $300 D. $100

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