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Question - Claudette, Inc., provides warranties for many of its products. The January 1, 2011, balance of the Estimated Warranty Liability account was $28,500. Based on an analysis of warranty claims during the past several years, this year's warranty provision was estimated to be 0.2 percent of sales. During 2011, the actual costs of servicing products under warranty were $25,000, and sales were $5,300,000.
What amount will be reported in the Estimated Warranty Liability account on the December 31, 2011 balance sheet?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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