Blast sells portable CD players and each player carries a one-year replacement warranty. 10 percent of the units sold typically need to be replaced over the warranty period. Blast's cost to replace a CD player is $25 per unit. During May, Blast sold 650 units for $50 each. For what amount would Blast debit Product Warrant Expense in May?

a. $3,250
b. $1,625
c. $650
d. $1,300


b

Business

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