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Account for Warranties. Key Company offers a three-year warranty on its premium door locks. During the year, the company had sales of $100,000. Related to the sales, warranty costs should be approximately $3,000 per year. How much warranty expenses related to these sales will Key Company's income statement show in the year of the sales? How much warranty expense related to these sales will Key the Company have in the two years after the sales?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9983953

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