Focus Company sells merchandise with a one year warranty. In 2013, sales consisted of 2,500 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2013 and 70% in 2014 . In the 2013 income statement, Focus should show warranty expense of
a. $25,000
b. $7,500
c. $17,500
d. $0
e. $12,500
A
Business
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