On December 1, Jiang Ltd. introduces a new product that includes a 1-year warranty on parts. In

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On December 1, Jiang Ltd. introduces a new product that includes a 1-year warranty on parts. In December, 1,000 units are sold. Management believes that 4% of the units will be defective and that the average warranty costs will be HK$680 per unit. Prepare the adjusting entry at December 31 to accrue the estimated warranty cost.
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Financial Accounting

ISBN: 978-1118978085

IFRS 3rd edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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