Ranch Company Estimates Warranty Expense as 5% of Sales

question 97

Multiple Choice

Ranch Company estimates warranty expense as 5% of sales. On January 1, warranties payable was $13,000. During the year Ranch paid $5,000 to meet its warranty obligations and recorded sales of $120,000. The December 31 liability for the warranty is

• A)$10,000.
• B)$12,000.
• C)$6,000.
• D)$14,000.

Describe how cells adapt their structure to maximize efficiency related to size and surface area.

Differentiate between eukaryotic and prokaryotic cells and their functions.

Understand the concept of cellular movement mechanisms via structures like cilia and flagella.

Explain the role of the cell membrane and extracellular components in cellular integrity and communication.

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Definitions:

Limited Liability

Limited liability is a legal structure that restricts investors' or owners' personal responsibility for a company’s debts and losses to the extent of their investment.

Potential Sales

The estimated total sales revenue that a company could theoretically achieve in a market under ideal conditions.

Treasurer

An officer in an organization responsible for managing the institution's treasury, including financial planning, risk management, and investment activities.

Controller

A high-level executive responsible for overseeing the accounting operations of a company, including financial reporting and budgeting.