Felix Sales Offers Warranties on All Their Electronic Goods

question 76

Essay

Felix Sales offers warranties on all their electronic goods. Warranty expense is estimated at 3.5% of sales revenue. In 2015, Felix had $333,000 of sales. In the same year, Felix paid out $8,750 of warranty payments. Provide the journal entry to record the disbursement of warranty payments.

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Definitions:

Correlational Research

A type of non-experimental study design used to measure the relationship between two or more variables.

Field Research

The collection of data outside of a laboratory, library, or workplace setting, directly in the natural or real-world setting.

Single-Blind Study

A type of study or experiment where only the participants do not know which group (control or experimental) they are in to reduce bias.

Ethical Guideline

A set of recommendations that outline appropriate conduct and decision-making to ensure ethical behaviour in various contexts.