Platinum Corp

question 11

Multiple Choice

Platinum Corp. uses the expense approach to account for warranties. They sell a used car for $ 30,000 on Oct 25, 2020, with a one-year warranty covering parts and labour. Warranty expense is estimated at 2% of the selling price, and the appropriate adjusting entry is recorded at Dec 31, 2020. On March 12, 2021, the car is returned for warranty repairs. This cost Platinum $ 200 in parts and $ 120 in labour. When recording the March 12, 2021 transaction, Platinum would debit Warranty Expense with

• A) zero.
• B) $ 120.
• C) $ 200.
• D) $ 320.

---

Definitions:

Oxytocin

A hormone that plays roles in social bonding, sexual reproduction, childbirth, and the period after childbirth.

Nursing

The profession or practice of providing care for the sick and infirm.

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, often measured for diagnosis since it is closely related to the force and rate of the heartbeat and the diameter and elasticity of the arterial walls.

Antidiuretic Hormone

A hormone secreted by the posterior pituitary gland that conserves water in the body by reducing urine output and increasing water absorption in the kidneys.