Buffalo,Inc

question 3

Multiple Choice

Buffalo,Inc.reported sales revenue for 2017 of $911,000.The products were sold with a nine-month warranty.Members of Buffalo's management estimate that the cost of the warranty will be equal to 9% of sales revenue.Which of the following will be included in the entry to record the actual amounts paid out as a result of warranty claims?

• A)a debit to Estimated Warranty Payable for the actual amount of payments
• B)a credit to Estimated Warranty Payable for $81,990
• C)a debit to Estimated Warranty Payable for $81,990
• D)a debit to Warranty Expense for the actual amount of payments

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Definitions:

Control Behaviour

Refers to the management or regulation of one's actions or reactions in various situations.

Humanist

A person who advocates for the values of human welfare, dignity, and rationalism, often emphasizing the importance of human values and concerns.

Environmental Circumstances

The physical, social, and cultural conditions that surround and influence an individual or community.

Relevance

The quality of being closely connected or appropriate to what is being done or considered.