During September,Excom Sold 100 Radios for $50 Each and Provided

question 122

Multiple Choice

During September,Excom sold 100 radios for $50 each and provided a two-year warranty with each unit.Each radio cost Excom $30 to produce.If 5% of the goods sold typically need to be replaced over the warranty period and one is actually replaced during September,for what amount in September would Excom debit Product Warranty Expense?

• A)$50
• B)$150
• C)$30
• D)$120

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Definitions:

Money Market Mutual Funds

Investment funds which gather capital from investors to buy short-term, low-risk securities such as Treasury bills and commercial paper.

M1

A category of the money supply that includes all physical money, such as coins and currency, as well as demand deposits, checking accounts, and negotiable order of withdrawal (NOW) accounts.

M2

A measure of the money supply that includes cash and checking deposits (M1) as well as near money, such as savings deposits, money market securities, and time deposits.

Federal Reserve

The central banking system of the United States, responsible for nation's monetary policy, financial regulation, and stability of the financial system.