A Company Sells Computers for $1,800 Each

question 47

Multiple Choice

A company sells computers for $1,800 each.Each computer has a two-year warranty that covers replacement of defective parts.It is estimated that 2% of all computers sold will be returned under the warranty with an average cost of $150 each.During November,the company sold 30,000 computers;.400 computers were serviced under the warranty during November at a total cost of $55,000.The balance in the Estimated Warranty Liability account at November 1 was $29,000.What is the company's warranty expense for the month of November?

• A)$26,000
• B)$45,000
• C)$55,000
• D)$60,000
• E)$90,000

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Definitions:

Cyclopentanone

A five-membered cyclic ketone, characterized by a ring structure containing one ketone group, used as a precursor in the synthesis of fragrances and pharmaceuticals.

Hydrate

A compound typically formed by the absorption of water molecules into its structure, often resulting in a crystalline form.

PhCOCl

PhCOCl refers to benzoyl chloride, a colorless, fuming liquid with a pungent smell, used in organic synthesis, represented by the formula C6H5COCl.

Carbonyl Group

A functional group consisting of a carbon atom double-bonded to an oxygen atom (C=O) found in aldehydes, ketones, carboxylic acids, and esters.