Flint Company produces widgets that cost $30 each and have a 5 percent failure rate. If 500 widgets are sold, the entry to record the estimated product warranty expense would be
A) Product Warranty Expense 150 Estimated Product Warranty Liability 150
B) Product Warranty Expense 750 Estimated Product Warranty Liability 750
C) Product Warranty Expense 75 Cash 75
D) Estimated Product Warranty Liability 150 Cash 150
B
Business
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