Synergy Appliances Sells Dishwashers with a 4-Year Warranty

question 31

Multiple Choice

Synergy Appliances sells dishwashers with a 4-year warranty. In 2013, sales revenue for dishwashers is $85,000. The company estimates warranty expense at 4.5% of revenues. What is the total estimated warranty payable of Synergy Appliances in 2013?

• A)$3,825.00
• B)$956.25
• C)$1,400.00
• D)$3,000.00

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N7:2

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