If Product X Cost $50 and Had a 4 Percent $\begin{array} { l r } \text { Product Warranty Expense } & 2,000\\\text { Estimated Product Warranty Liability }&&2,000 \end{array}$

question 59

Multiple Choice

If product X cost $50 and had a 4 percent failure rate,the entry to record the estimated product warranty expense in a month when 1,000 units are sold would be

• A)
• \(\begin{array} { l r } \text { Product Warranty Expense } & 2,000\\
• \text { Estimated Product Warranty Liability }&&2,000 \end{array}\)
• B)
• \(\begin{array}{llr}
• \text { Product Warranty Expense } &200\\
• \text { Estimated Product Warranty Liability} &&200\\
• \end{array}\)
• C)
• \(\begin{array}{llr}
• \text {Product Warranty Expense } &20\\
• \text { Cash } &&20\\
• \end{array}\)
• D)
• \(\begin{array}{llr}
• \text {Estimated Product Warranty Liability } &50\\
• \text { Cash} &&50\\
• \end{array}\)

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Definitions:

Fault

A fracture along which the adjacent rock surfaces are displaced parallel to the fracture.

Rock Layers

Horizontal strata of rocks, each layer typically representing a period of deposition in Earth's geological history.

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A block diagram, cross section, or map that shows the history of an area as a series of steps, proceeding from the earliest stages to the most recent one.

Geologic Diagrams

Visual representations of the Earth's surface and subsurface used to understand and interpret geological features, processes, and history.