Consider the Following to Answer the Question(s) Below

question 2

Multiple Choice

Consider the following to answer the question(s) below:
The option to buy extended warranties is commonplace with most electronics purchases. Does the type of purchase affect a consumer's willingness to pay extra for an extended warranty? Data for 420 consumers who purchased digital cameras and laptop computers from a leading electronics retailer are summarized in the table.
-Of those who bought a digital camera, the percentage who purchased the warranty is

• A) 41.67% (30/72)
• B) 17.14% (72/420)
• C) 7.14% (30/420)
• D) 41.14% (72/175)
• E) none of the above

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Definitions:

Allowance for Doubtful Accounts

An accounting provision made for accounts receivable that might not be collected, representing a business's estimate of noncollectable amounts.

Accounts Receivable

Accounts receivable represents money owed to a company by its customers for goods or services provided on credit.

Notes Receivable

Financial assets representing money owed to a company by customers or others, usually evidenced by a written promissory note.

Accounts Receivable

Monies owed to a company by customers for products or services that have been delivered or used but not yet paid for.