During September, Excom Sold 100 Radios for $50 Each

question 54

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% 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

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Definitions:

Isotope

Variants of a particular chemical element that differ in neutron number, and consequently in nucleon number, but not in proton number.

Neutrons

Subatomic particles found in the nucleus of an atom, with no electric charge and a mass slightly greater than that of protons.

Carbon

A chemical element with symbol C, known as the basis of all known life on Earth, capable of forming multiple compounds including carbon dioxide and organic materials.

Ca

The chemical symbol for calcium, an element with atomic number 20, essential for living organisms, particularly in cell physiology and bone formation.