In 2017,Scranton,Inc

question 22

Multiple Choice

In 2017,Scranton,Inc.sold 2,000 carpets for $50 each.The carpets carry a two-year warranty for repairs.Scranton estimates that repair costs will average 3% of the total selling price.What amount would be recorded in the warranty liability account as a result of selling the carpets during 2017?

• A)$1,500
• B)$3,000
• C)$50
• D)No liability should be recorded until the carpets are returned for repairs.

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Definitions:

Extinction

The gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, evokes a conditioned response.

Unconditioned Stimulus

An unconditioned stimulus is a stimulus that automatically triggers a reflexive response without any prior learning or conditioning.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.