In 2022, Mike's Bikes sells 500 bicycles. The company expects 2% of the bicycles to require warranty service. On average, servicing the bicycles returned for warranty costs $30 per bike. On January 1st 2023, Lance Armstrong brings in his bicycle for warranty service and it costs $50 to fix the bike.

How much should Warranty Expense be recorded at on the 12/31/2022 income statement?

Answer rating: 100% (QA)

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