Jumbo Sales Offers Warranties on All Their Electronic Goods

question 70

Multiple Choice

Jumbo Sales offers warranties on all their electronic goods. Warranty expense is estimated at 3% of sales revenue. In 2013, Jumbo had $595,000 of sales. In the same year, Jumbo paid out $8,500 of warranty payments. Which of the following is the entry needed to record the estimated warranty expense?

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Definitions:

Persuasive Message

A communication designed to influence the attitudes, beliefs, or actions of the recipient by presenting compelling arguments.

AIDA Model

A marketing framework that outlines the stages a customer goes through: Attention, Interest, Desire, and Action.

Social Media

Digital platforms and technologies that facilitate the creation and sharing of information, ideas, and other forms of expression via virtual communities and networks.

Fall-Winter Collection

A range of clothing, accessories, or fashion items designed specifically for the fall and winter seasons.