Felix Sales Offers Warranties on All Their Electronic Goods

question 22

Essay

Felix Sales offers warranties on all their electronic goods. Warranty expense is estimated at 3.5% of sales revenue. In 2015, Felix had $333,000 of sales. In the same year, Felix paid out $8,750 of warranty payments. Provide the journal entry to record the warranty expense.

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Definitions:

Sensitive

Refers to the capacity of an organism or device to detect or respond to stimuli or changes in the environment.

Longitudinal Study

A research design in which the same subjects are observed repeatedly over a period of time, enabling the study of changes and development.

Spankings

A form of punishment involving the striking of the buttocks, typically with the open hand, as a disciplinary measure.

Time-outs

A behavioral modification technique used to discipline children, involving a brief period of isolation or removal from a situation following undesirable behavior.