In 2006, Slimon Corporation Began Selling a New Line of Products

question 89

Multiple Choice

In 2006, Slimon Corporation began selling a new line of products that carry a two-year warranty against defects.Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows: First year of warranty $\quad 2 \%$
Second year of warranty $\quad 5 \%$ Sales and actual warranty expenditures for 2006 and 2007 are presented below: $$\begin{array} { l r r } & { 2006 } &{ 2007 } \\\text { Sales } & \$ 300,000 & \$ 400,000 \\\text { Actual warranty expenditures }&10,000 & 20,000\end{array}$$ What is the estimated warranty liability at the end of 2007?

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Definitions:

Highbrow Culture

Cultural products and activities considered intellectual or elite, often associated with high social status.

Strategic Amnesia

A deliberate or calculated forgetfulness of historical facts, events, or experiences, often to avoid confrontation with uncomfortable truths.

Racist Aesthetic

An approach or preference in art, literature, or design that promotes or reinforces racial stereotypes, often subtly or subconsciously.

Antiracist Aesthetic

A style or approach in art, literature, and media that seeks to confront and challenge racism and promote racial equality.