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Question - Burnaby corp. uses the Revenue approach to account for warranties. During 2020, the company sold $780,000 worth of products, all of which carried a two- year warranty (included in the price).It was estimated that 2% of the selling price represented the warranty portion, and that 40% of this related to 2020, and 60% to 2021. Assuming that Burnaby incurred costs of %2500 to service the warranties in 2020, and $5800. What is the balance in the unearned warranty Revenue account at the end of 2020?
Leverage and Portfolio Risk - Why is the risk of this strategy twice that of simply investing your $1 million in the market index fund
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