Use the Following Information for Questions

question 39

Multiple Choice

Use the following information for questions
The following accounts and balances were drawn from the records of Carolina Company on December 31,2016:

-The amount of Carolina's retained earnings after closing on December 31,2016 was:

• A)$5,900.
• B)$7,200.
• C)$3,900.
• D)$4,900.

---

Definitions:

Express Warranty

is a seller’s promise or guarantee that a product will meet certain quality and reliability standards, explicitly stated in the contract or sales agreement.

Credit

The ability of a consumer to obtain goods or services before payment, based on the trust that payment will be made in the future.

Sample

A portion, piece, or segment taken from something larger to represent the quality, style, or nature of the whole.

Merchantability

An implied warranty that goods sold by a merchant are reasonably fit for the general purpose for which they are sold.