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

question 185

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)
• \(\begin{array}{llr}
• \text { Product Warranty Expense} &2,000\\
• \text { Estimated Product Warranty Liability} &&2,000\\
• \end{array}\)
• 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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