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Milton 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 Milton Electronics Inc had already spent $1,510 on warranty repairs.
Question 1: Prepare 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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