Tanner Toys had sales of $2,500,000 during 2012. In 2011, 5% of sales were returned for a
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Required
a. What amount is Tanner expecting to refund customers for purchases made in 2012?
b. Should this amount be reported as a liability on the financial statements? Why or why not?
c. Is Tanner using a reasonable means to estimate warranty expense?
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a Tanner Toys is expecting to refund 75000 2500000 X 3 to customers for purc...View the full answer
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