Vision Wears product warranties state that defective glasses will be replaced free of charge for the life

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Vision Wear’s product warranties state that defective glasses will be replaced free of charge for the life of the product. Vision Wear estimates that 2% of the pairs of glasses sold will require replacement. Each pair of glasses costs Vision Wear on average $40. During October 2014, Vision Wear sold 1,300 pairs of glasses at an average price of $120 per pair. Record the estimated warranty liability for October.

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Fundamental Accounting Principles Volume II

ISBN: 978-1259066511

14th Canadian Edition

Authors: Larson Kermit, Jensen Tilly

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