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Unformatted text preview: Accrued payroll (200*(650/2)) 65,000 C) The first method of "Expense warranty accrual" discloses future warranty payments. D) Expense warranty accrual method is the actual closest to the actual income since it is stated that "It is the generally accepted method and should be used whenever the warranty is an integral and inseparable part of the sale and is viewed as a loss contingency." Basically the warranty is part of the sales, therefore should be recorded in the year the sale is made....
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- Spring '09