Fast Bikes Company Offers Warranties on All Their Bikes

question 132

Multiple Choice

Fast Bikes Company offers warranties on all their bikes.They estimate warranty expense at 3.5% of sales.At the beginning of 2018,the Estimated Warranty Payable account had a credit balance of $1900.During the year,Fast Bikes had $296,000 in sales and had to pay out $5900 in warranty payments.At the end of the year,what is the ending balance in the Estimated Warranty Payable accounts?

• A) $6360
• B) $7800
• C) $8460
• D) $10,360

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Definitions:

Battle of Bunker Hill

An early and significant battle during the American Revolutionary War on June 17, 1775, showcasing the determination and resilience of the American forces.

British Casualties

Individuals from Britain who were killed, wounded, missing, or captured during a conflict or in a military context.

Decisive Victory

A military outcome that conclusively resolves the objective being fought over, leaving the victor clear and undisputable.

Second Continental Congress

A convention of delegates from the Thirteen Colonies that met beginning in May 1775, managing the colonial war effort and moving towards independence.