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Q. a) Prepare 2010 entries for Selzer using the expense warranty approach. assume that Selzer estimates the total cost of servicing the warranties will be $120,000 for 2 years.

b) Prepare 2010 entries for Selzer assuming that the warranties are not an integral part of the sale. assume that of the sales total, $160,000 relates to sales of warranty contracts. selzer estimates the total cost of servicing the warranties will be $120,000 for 2 years. estimate revenues earned on the basis of costs incurred an estimated costs.

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