Platinum Corp

question 184

Multiple Choice

Platinum Corp.uses the expense approach to account for warranties.They sell a used car for $30,000 on Oct 25, 2014, 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, 2014.On March 12, 2015, the car is returned for warranty repairs.This cost Platinum $200 in parts and $120 in labour.When recording the March 12, 2015 transaction, Platinum would debit Warranty Expense with

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

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Definitions:

Learning Disability

A neurological disorder that affects an individual's ability to receive, process, store, or respond to information.

Resourceful Attitude

An approach characterized by the ability to find quick and clever ways to overcome difficulties, often using limited resources creatively.

Extended Time

A modification in timelines to accommodate individual needs, particularly in educational or testing contexts, allowing more time to complete tasks.

Study Group

A small cohort of individuals who gather regularly to collaboratively learn, discuss concepts, and study for examinations.