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:

Inappropriate Affect

A behavioral condition where an individual’s emotional expression is not congruent with the situation or their underlying emotional state.

Schizophrenia

A mental disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Mini-Mental State Examination (MMSE)

A 30-point questionnaire test used to screen for cognitive impairment and to estimate the severity and progression of cognitive impairment.

Cognitive Impairment

A decline in mental functions such as memory, attention, and decision-making, which can interfere with daily activities and quality of life.