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:

Informal Systems

The unofficial and unwritten ways that an organization operates, including social networks, practices, and norms that influence behavior and decisions.

Organizational Politics

The use of power and social networking within a workplace to achieve changes that benefit the individual or group.

Power Bases

The various sources of influence and authority an individual or organization possesses, which can affect others' behaviors and perceptions.

Powerlessness

A condition or feeling of lacking the ability, strength, or authority to act or influence events or people.