Determining amount of product warranty expense

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In 2008 , company A sold 100,000 DVD pliers for $80 each. Company A provides a 2-year warranty on the players. It estimates that approximately 5 percent will require repairs and that the average cost will be $12. During 2001, Company A actually repaired 4,100 players at an average cost of $11.50. What is te amount of product warranty expense that Company A should recognize in 2008?

Reference no: EM13143529

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