Table 11-13 Arc Digital Starts the Year with Balances in Its Estimated

question 18

Multiple Choice

Table 11-13
Arc Digital starts the year with balances in its Estimated warranty payable account and Warranty expense account as shown below. During the year, there were $190,000 of sales and $3,200 of warranty repair payments. Arc Digital estimates warranty expense at 1.5% of sales.
-Refer to Table 11-13. At the end of the year, what was the balance in the estimated warranty payable account?

• A)$2,850 debit
• B)$1,050 credit
• C)$3,200 debit
• D)$1,420 debit

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Definitions:

Favorable Treatment

The act of giving preferential consideration or benefits to a particular party or group.

Disparate-Treatment Discrimination

A form of discrimination where individuals are treated differently based on prohibited factors such as race, gender, age, or religion, in a way that is not justified by legitimate business needs.

Ethnicity

A category of identity based on common language, culture, ancestry, or social practices.

National Origin

Refers to the country where a person was born, or where their ancestors came from.