Franconia Sales Offers Warranties on All Their Electronic Goods

question 7

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 disbursement of warranty payments?

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Definitions:

Rhymes

Literary devices which involve the repetition of similar or identical sounds at the end of two or more words, most often at the ends of lines in poems and songs.

Repetition

The act or process of doing or saying something again, often used for emphasis, learning, or effect.

Simple Plot

A Simple Plot refers to the basic structure of a narrative with a clear and straightforward sequence of events.

Perspective

A particular attitude towards or way of regarding something; a point of view.