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:

Conductors

Materials that allow the flow of electric current through them, often used in electrical wiring and components.

Insulators

Materials or objects that do not easily conduct electricity, used to prevent unwanted flow of current.

Electromotive Force

The energy supplied per charge by a source of electrical energy, such as a battery or generator, measured in volts.

Volts

The unit of measurement for electric potential difference or electromotive force, central to understanding electric circuits.