During 2015,Blevert Co

question 11

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:

Cowrie-Shell Headdresses

Traditional adornments made with cowrie shells, often symbolizing wealth, power, and status in various African and Oceanic cultures.

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Traditional ritualistic sculptures from the Kongo people of Central Africa, believed to be infused with spiritual significance and power.

Nkisi N'kondi

A type of power figure from Central Africa's Kongo region, believed to house spirits that can be activated through ritualistic practices.

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An individual who has undergone religious education and ordination to perform sacraments, guide spiritual life, and lead religious ceremonies.