Armadillo Appliances Sells New and Reconditioned Kitchen and Laundry Appliances

question 41

Multiple Choice

Armadillo Appliances sells new and reconditioned kitchen and laundry appliances. Armadillo sold a reconditioned refrigerator for $1,100 on Oct 25, 20X4, with a one-year warranty covering parts and labour. Warranty expense is estimated at 5% of the selling price, and the appropriate adjusting entry is recorded at Dec 31, 20X4. On January 6, 20X5, the refrigerator is returned for warranty repairs. This cost Armadillo $25 in parts and $20 in labour. When recording the January 6, 20X5 transaction, Armadillo would debit warranty expense with

• A) $45
• B) $0
• C) $55
• D) $25

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Definitions:

Depressants

Substances that reduce neural activity and slow down the functions of the central nervous system, often used to induce calmness or sleep.

Tranquilizers

Medications used to reduce tension or anxiety, often affecting the central nervous system.

Alcohol

A psychoactive substance found in beverages such as beer, wine, and spirits, known for its effects on the central nervous system.

Depressants

A category of drugs that reduce neural activity and slow down the functions of the brain and body.