Franconia Sales Offers Warranties on All Their Electronic Goods

question 49

Multiple Choice

Franconia Sales offers warranties on all their electronic goods. Warranty expense is estimated at 2% of sales revenue. In 2013, Franconia had $500,000 of sales. In the same year, Franconia paid out $7,500 of warranty payments. Which of the following is the entry needed to record the estimated warranty expense?

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Definitions:

Team Building

The process of enhancing social relations and defining roles within teams, often involving collaborative tasks aimed at improving team performance and cohesion.

Team Building

The process of creating stronger and more cohesive groups through various activities and strategies aimed at enhancing teamwork.

Virtual Teams

Teams that work together remotely, utilizing digital communication tools to collaborate across different locations and time zones.

Information Technology

The use of computers, networks, and other electronic devices to store, process, and exchange information.