The Auditor for Universal Tools, Inc $$\begin{array} { | c | r | r | } \hline \text { Warranty Liability } & 25,000 & \\\hline \text { Warranty Expense } & & 25,000 \\\hline\end{array}$$

question 105

Multiple Choice

The auditor for Universal Tools, Inc. discovered in 2019 that the warranty liability account showed a $25,000 debit balance. She investigated and discovered that the 2% estimate based on sales for warranty expense was recorded and understated, and it was more likely 3.5%. Sales for 2019 were $6,000,000. What is the appropriate journal entry as a result of this discovery?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Warranty Liability } & 25,000 & \\
• \hline \text { Warranty Expense } & & 25,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Warranty Expense } & 90,000 & \\
• \hline \text { Warranty Liability } & & 90,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Warranty Liability } & 90,000 & \\
• \hline \text { Warranty Expense } & & 90,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Warranty Expense } & 210,000 & \\
• \hline \text { Warranty Liability } & & 210,000 \\
• \hline
• \end{array}\]

Distinguish between the different contributions to offspring by males and females across species.

Acknowledge the benefits and costs of territoriality in animals.

Understand the basic characteristics that define chordates and vertebrates.

Recognize the evolutionary sequence and relationships among various groups of chordates and vertebrates.

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Definitions:

Global Competition

The competitive dynamics between companies, industries, or countries on an international scale.

Unionized Organizations

Workplaces where employees are members of a union, a collective organization that negotiates wages, working conditions, and benefits on their behalf.

Collective Agreement

A written contract negotiated between an employer and a union representing the employees, outlining terms of employment, salaries, and working conditions.

Legal Compliance

The process of ensuring that an organization's practices, policies, and operations adhere to applicable laws and regulations.