During 2017, Blevert Co What Amount Should Blevert Report as a Liability at December

question 100

Multiple Choice

During 2017, Blevert Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 4% in the year after sale, and 6% in the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows:
$\begin{array}{lcc}& \underline{\text {Sales}}& \underline{\text {Actual Warranty Expenditures}}\\2017 & \$ 200,000 & 7,000 \\2018 & 1,400,000 & 29,000 \\2019 &\underline{ 2,400,000} &\underline{ 100,000} \\&\$4,000,000&\$136,000\end{array}$

What amount should Blevert report as a liability at December 31, 2019?

• A) $288,000
• B) $139,000
• C) $156,000
• D) $344,000

Understand the characteristics and impacts of skin conditions such as eczema and cellulitis.

Recall the important functions of the skin and its significant role in body weight.

Recognize symptoms and manifestations of various skin infections and conditions.

Identify effective treatments and preventive measures for skin conditions.

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Definitions:

Physical Distribution

The activities concerned with the efficient movement of products from the producer to consumers, including storage and transportation.

Supply Chain Management

The oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.

Price Elasticity

A measure of how sensitive the quantity demanded of a good or service is to a change in its price.

Price Sensitivity

The degree to which the price of a product affects consumers' purchasing behaviors.