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During June, SoundHouse Sold 800 Portable CD Players for $50

Question 146

Multiple Choice

During June, SoundHouse sold 800 portable CD players for $50 each. Each CD player cost SoundHouse $25 to purchase and carried a one-year warranty. If 10 percent typically need to be replaced over the warranty period, what amount should SoundHouse debit Product Warranty Expense for in June?


A) $4,000
B) $400
C) $2,000
D) $1,000
E) $200

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