Bruges Electronics Inc

question 4

Multiple Choice

Bruges Electronics Inc. offers one model of laptop computer for £1000 and a two-year warranty for £250. The retailer, as part of a Boxing Day promotion, offers a limited-time offer for the laptop, including delivery and the two-year warranty for £1,180. The cost of the computer to Bruges is £700. Any warranty repairs are assumed to be done ratably over time. Bruges accounts for transactions using the customer consideration model. In the first twelve months following the sale, Bruges incurred £980 of costs servicing the computers under warranty.
In the first twelve months following the sale, Bruges would reduce the Contract liability - warranty account by:

• A) £784.
• B) £980
• C) £1,180.
• D) £1,380.

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Definitions:

Converse

In logic, the converse of a statement is formed by swapping the hypothesis and conclusion of the original statement.

Proposition

A proclamation or assertion signaling an assessment or belief.

Obverse

The statement formed by negating both the subject and predicate of a given categorical proposition and changing the quality of the original proposition (from affirmative to negative or vice versa).

Proposition

A statement or assertion that expresses a judgment or opinion, which can be evaluated as true or false.