Julia Used Cars Offers a One-Year Warranty from the Date

question 78

Multiple Choice

Julia Used Cars offers a one-year warranty from the date of sale on all cars it sells. From historic data, Bill Julia estimates that, on average, each car will require the company to incur warranty cost of $820. The following activities occurred during 2017.
$$\begin{array} { | l | l | l | } \hline \text { Feb } & 4 & \text { Sold five cars. } \\\hline \text { Mar } & 23 & \text { Sold ten cars. } \\\hline \text { May } & 20 & \text { Incurred warranty costs of } \$ \mathbf { 6 , 0 0 0 } \text {on four cars sold in 2016. } \\\hline \text { July } & 6 & \text { Sold eight cars. } \\\hline \text { Sep } & 1 & \text { Incurred warranty costs of } \$ 5,000 \text { on five cars sold in 2016. } \\\hline \text { Noy } & 14 & \text { Incurred warranty costs of } \$ 4,000 \text { on one car sold in 2016. } \\\hline \text { Dec } & 22 & \text { Sold twelve cars. } \\\hline\end{array}$$
If the January 1, 2017 beginning balance in the warranty liability account was $2,500, what would be the year-end warranty liability balance?

• A)$31,200
• B)$16,200
• C)$11,200
• D)$13,700

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Definitions:

Behavioral Management

strategies and practices employed to influence an individual's actions and behaviors in a positive and constructive manner.

Physical Abuse

involves the use of physical force that may result in bodily injury, physical pain, or impairment as a form of maltreatment.

Visible Injuries

Physical damages or wounds that are observable on the body.

Intimate Partner Abuse

Refers to physical, sexual, or psychological harm by a current or former partner or spouse, a serious public health issue.