During May, Blast Sold 650 Portable CD Players for $50

During May, Blast sold 650 portable CD players for $50 each. Each CD player cost Blast $25 to purchase and carried a one-year warranty. If 10 percent of the goods sold typically need to be replaced over the warranty period, what amount should Blast debit Product Warranty Expense for in May?

A) $3,250
B) $1,625
C) $ 650
D) $1,300

Correct Answer:

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