Computer Inc

question 51

Multiple Choice

Computer Inc. sells equipment with a 3-year warranty. Prior experience indicates that costs for warranty repairs average 3% in the first year, 2% in the second year and 1% in the third year. In 2020, Computer Inc. had sales of $800,000. It paid $20,000 for materials and labour to make warranty-related repairs in 2020. What amount will be recorded as warranty expense in 2020?

• A)$20,000
• B)$24,000
• C)$28,000
• D)$48,000

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Definitions:

Steamship Voyages

signifies journeys or travels undertaken by ships powered by steam engines, especially during the 19th and early 20th centuries.

Sojourners

Sojourners are individuals who reside temporarily in a place, distinct from migrants or permanent residents, often with the intention of returning to their country of origin.

Safe Working Conditions

Measures and standards implemented to ensure the work environment is free from hazards that could cause harm to employees.

Decent Wage

A level of income regarded as sufficient for a worker and their family to live on, meeting basic needs such as housing, food, healthcare, and education.