During September, Excom Sold 100 Radios for $50 Each

question 108

Multiple Choice

During September, Excom sold 100 radios for $50 each. Each radio cost Excom $30 to purchase, and carried a two-year warranty. If 5% of the goods sold typically need to be replaced over the warranty period and one is actually replaced during September, for what amount in September would Excom debit Product Warranty Expense?

• A) $50
• B) $150
• C) $30
• D) $120