During 2015,Blevert Co

question 7

Multiple Choice

During 2015,Blevert Co.introduced a new line of machines that carry a three-year warranty against manufacturer's defects.Based on industry experience,warranty costs are estimated at 1% of sales in the year of sale,3% in the year after sale,and 5% in the second year after sale.Sales and actual warranty expenditures for the first three-year period were as follows: What amount should Blevert report as a liability at December 31,2017?

• A)$11,000
• B)$20,000
• C)$125,000
• D)$224,000

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Definitions:

Somatic Symptoms

Physical symptoms that can occur with or without any identifiable physical cause and are often associated with psychological conditions.

Collectivism

A cultural value that emphasizes the importance of groups and communities over individual interests.

Patriarchal

A social system in which men hold primary power and predominate in roles of political leadership, moral authority, social privilege, and control of property.

Communication

The process of exchanging information, ideas, thoughts, and feelings through spoken or written words, symbols, or actions.