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    Warranty Liability Problem

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    Indicate the liability amount, if any, that is reported on the balance sheet at December 31, 2007. During November and December 2007, Company X sold products to a customer and provided a warranty against product failure for 90 days. Estimated costs of honoring this 90-day warranty during 2007 are $2,200.

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    Generally accepted accounting principle requires that the related warranty expense and liability for a ...

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    This solution helps with a problem about warranty liability.