Butcher co sold 10000 toys in year4 for 20 each the company, Ask an Expert

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Butcher Co. sold 10,000 toys in Year4 for $20 each. The company expects that 5% of the toys will be returned under warranty for a refund of the sales price in the 2-year warranty period. There were $6,000 of warranty obligations paid in cash during Year4. What is Butcher's warranty expense for Year4?

a. $5,000

b. $6,000

c. $10,000

d. $3,000

e. $20,000

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M92049016

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