Excom sells radios and each unit carries a two-year replacement warranty. Typically, 5% of the radios sold need to be replaced c

Question

3 years ago

6

Excom sells radios and each unit carries a two-year replacement warranty. Typically, 5% of the radios sold need to be replaced c

osting Excom $30 per radio. During September, Excom sold 700 radios for $48 each. For what amount in September would Excom debit Product Warranty Expense? Round your answer to the nearest whole dollar.

Business

1 answer:

Leona [35] · Answer 1 · 2022-08-28T06:48:45+03:00

Answer:

The amount in September would Excom debit Product Warranty Expense is $805

Explanation:

According to the given data In order to calculate the amount in September would Excom debit Product Warranty Expense we would have to make the following calculation:

Product warranty expense = 700 radios * 5% * cost per radio $23

Product warranty expense =35*$23

Product warranty expense =$805

The amount in September would Excom debit Product Warranty Expense is $805