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Question- Concept 1 Office Products sells office electronics that carry a 60-day manufacturer's warranty. At the time of purchase, customers are offered the opportunity to also buy a 1-year or 2-year extended warranty for an additional charge.
Required:
1. Does the sale of the extended warranty represent a loss contingency?
2. Provide journal entries for the extended warranty sales and revenue recognition.
Explain how your position changes if the employer reports to the IRS the value of the employees' frequent-flyer mileage.
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