Jaye's Company Paid $750 Cash to Replace a Part on Equipment

question 136

Multiple Choice

Jaye's Company paid $750 cash to replace a part on equipment sold under warranty. To recognize the payment, which of the following are correct?

• A)Debit Warranty Payable and credit Cash
• B)Debit Warranty Expense and credit Cash
• C)Debit Equipment Expense and credit Cash
• D)Debit Parts Expense and credit Cash

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Definitions:

Services from Land

The benefits and outputs produced by natural resources without altering their original physical state, such as agricultural production, mining, and scenic views.

Ownership

Refers to the rights that confirm the legal possession and control over property, assets, or resources.

Marginal Product of Labor

The additional output a firm gains from employing one more unit of labor, holding all other inputs constant.

Value of Marginal Product

The additional revenue generated by employing one more unit of a factor of production, keeping other factors constant.