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Question a. John Electronics Inc. started its business in 2019 and sold electronics worth $185,000 in 2019. The company provided a 2- year limited warranty for all sales. As per company estimate warranty costs would be 1% of sales in the first year and 3% of sales in the second year. By end of 2019 John Electronics Inc had already spent $1,510 on warranty repairs. Prepare the journal entries related to the warranty for 2019. Calculate the amount of Estimated Warranty Payable to be reported on the Balance Sheet on Dec 31, 2019
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