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:

Environmental Law

All state and federal laws or regulations enacted or issued to protect the environment and preserve environmental resources.

Administrative Agencies

Governmental bodies responsible for executing and enforcing laws and regulations.

Law Firms

Professional business organizations composed of lawyers who engage in the practice of law.

Corporations

Organizations that exist independently from their proprietors, with the ability to possess assets, engage in agreements, and face litigation.