Sara Digital Starts the Year with $2,500 in Its Estimated

question 51

Multiple Choice

Sara Digital starts the year with $2,500 in its Estimated Warranty Payable account. During the year, there were $210,000 of sales and $4,500 of warranty repair payments. Sara Digital estimates warranty expense at 2% of sales. The journal entry to record this will include a debit to Warranty Expense for:

• A)$4,200
• B)$4,500
• C)$2,500
• D)$2,200

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Definitions:

Intelligence Testing

The process of measuring a person's cognitive abilities, aptitudes, and intellectual potential through standardized tests.

Intelligence

The ability to learn, understand, and apply information, make sound judgments, solve problems, and adapt to new situations.

Spatial Representation

The ability to perceive, analyze, and understand the spatial relationships between objects or within an environment.

Problem-Solving Skills

The ability to find solutions for challenging situations or obstacles effectively.