Hi-Tech Company Produces Widgets That Cost $60 Each and Have $\begin{array}{llr} \text { Product Warranty Expense } &300\\ \text { Estimated Product Warranty Liability } &&300\\\end{array}$

question 33

Multiple Choice

Hi-Tech Company produces widgets that cost $60 each and have a 5 percent failure rate.If 500 widgets are sold,the entry to record the estimated product warranty expense would be

• A)
• \(\begin{array}{llr}
• \text { Product Warranty Expense } &300\\
• \text { Estimated Product Warranty Liability } &&300\\
• \end{array}\)
• B)
• \(\begin{array}{llr}
• \text { Product Warranty Expense } & 1,500\\
• \text { Estimated Product Warranty Liability} && 1,500\\
• \end{array}\)
• C)
• \(\begin{array}{llr}
• \text { Product Warranty Expense} &150\\
• \text { Cash } &&150\\
• \end{array}\)
• D)
• \(\begin{array}{llr}
• \text { Estimated Product Warranty Liability } &75\\
• \text { Cash } &&75\\
• \end{array}\)

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Definitions:

Fetal Structure

The physical form and organs of a fetus as it develops in the womb, crucial for its growth and development.

Embryo

An early stage of development in multicellular organisms, in humans it refers to the stage from fertilization until the end of the eighth week of pregnancy.

Nutrients

Substances that provide nourishment essential for the growth and maintenance of life.

Genital Organs

The reproductive organs in both males and females, including external structures like the penis and vulva and internal structures like the uterus and testes.