Easy Electronics Inc

question 14

Essay

Easy Electronics Inc. is a store specializing in electronic products. For the first time this year they offered a one-year warranty on all products sold in the store and sold gift cards. They estimate that the warranty costs should average 2% of sales (total sales of $8,000,000 in this past year) and by year end they had spent $40,000 on the program. For gift cards, they sold $25,000 worth during the year, but only $5,000 had been redeemed.
Instructions
The accountant has asked you to explain how these two new types of services should be recorded.

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Definitions:

Rumination

The process of continuously thinking about the same thoughts, often negative, which can intensify feelings of stress or distress.

Social Support

The assistance and comfort received from friends, family, and the community, which can be emotional, informational, or material.

Psychotherapy Approaches

Various theoretical orientations and techniques employed by therapists to address and treat psychological disorders, emotional distress, and behavioral issues.

Social Change

The transformation over time of cultural norms, behaviors, and societal structures.