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1. Izzy Company sells a television that carries a 90-day unconditional warranty against product failure. From prior years’ experience, Izzy estimates that 4% of units sold each period will require repair at an average cost of $150 per unit. During the current period, Izzy sold 22,000 units and repaired 200 units. How much warranty expense must Izzy report in its current period income statement? 138,000 132,000 102,000 30,000 1
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1. Izzy Company sells a television that carries a 90-day unconditional warranty against product fail...
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