Question: Excom sells radios and each unit carries a two-year replacement warranty. Typically, 5% of the radios sold need to be replaced costing Excom $30 per
Excom sells radios and each unit carries a two-year replacement warranty. Typically, 5% of the radios sold need to be replaced costing Excom $30 per radio. During September, Excom sold 640 radios for $40 each. For what amount in September would Excom debit Product Warranty Expense? Round your answer to the nearest whole dollar.
a.$960
b.$30
c.$40
d.$25,600
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