Monthly Sales Were $150,000

question 134

Multiple Choice

Monthly sales were $150,000. Warranty costs are estimated at 5% of monthly sales. In the month of sale, the company should record a debit to:

• A)Warranty Payable for $7,500.
• B)Warranty Expense for $7,500.
• C)Sales for $7,500.
• D)none of the above. No entry is required since the actual liability amount is not known.

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Definitions:

Modern Humans

Homo sapiens, the species to which all existing human beings belong, characterized by a highly developed brain, capable of abstract thinking, language, and the creation of complex tools and societies.

Brain Size

Refers to the volume or weight of the brain, often considered in relation to body size among species and associated with various cognitive and neurological functions.

Neanderthals

Neanderthals were an extinct species or subspecies of archaic humans who lived in Eurasia until approximately 40,000 years ago.

Homo Erectus

An extinct species of early human that lived throughout the Pleistocene epoch, known for its upright walking ability.