Sara Digital Starts the Year with $2,500 in Its Estimated

question 51

Multiple Choice

Sara Digital starts the year with $2,500 in its Estimated Warranty Payable account. During the year, there were $210,000 of sales and $4,500 of warranty repair payments. Sara Digital estimates warranty expense at 2% of sales. The journal entry to record this will include a debit to Warranty Expense for:

• A)$4,200
• B)$4,500
• C)$2,500
• D)$2,200

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Definitions:

Laboratory Settings

Environments designed for scientific research, experiments, or measurements, often controlled to eliminate variables that could affect the results.

Afterimage

A visual phenomenon where an image continues to appear briefly even after exposure to the actual image has ceased.

Visual Sensation

Visual sensation is the process of the eyes responding to the presence of light, enabling the perception of colors, shapes, and motion.

Stimulus

Anything in the environment that elicits a response from an organism or a psychological system.