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Arc Digital Starts the Year with Balances in Its Estimated

question 144

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Arc Digital starts the year with balances in its Estimated warranty payable account and Warranty expense account as shown below. During the year, there were $190,000 of sales and $3,200 of warranty repair payments. Arc Digital estimates warranty expense at 1.5% of sales. Arc Digital starts the year with balances in its Estimated warranty payable account and Warranty expense account as shown below. During the year, there were $190,000 of sales and $3,200 of warranty repair payments. Arc Digital estimates warranty expense at 1.5% of sales.   At the end of the year, what was the balance in the Estimated warranty payable account? A) $2,850 debit B) $1,050 credit C) $3,200 debit D) $1,420 debit At the end of the year, what was the balance in the Estimated warranty payable account?

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Definitions:

Sensorimotor Stage

The first of the four stages of cognitive development in Piaget's theory, occurring from birth to about 2 years of age, where infants learn about the world through their movements and sensory experiences.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed.

Abusive Parenting

A harmful pattern of behavior by parents towards their children, which can be physical, emotional, or sexual in nature.

Insecure Attachment

A type of attachment characterized by fear, anxiety, or avoidance in relationships, often resulting from inconsistent caregiving in early life.

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