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Digital Audio Works, Inc. warrants its products for 1year. The estimated product warranty is 1½% of sales. Assume that sales were $975,000 forJanuary. In February, a customer received warranty repairsrequiring $5,280 of parts.
1. Determine the warranty liability at January 31, the endof the first month of the current year.2. What accounts are decreased for the warranty work provided in February?
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