Research Company sells merchandise with a one year warranty. In the current year, sales consisted of 2,044 units. It is estimated that warranty repairs will average $11 per unit sold, and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Research should show warranty expense of
Select the correct answer.
a. $6,745
b. $22,484
c. $15,739
d. $0
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