Answer:
$13,725
Explanation:
The movement in the warranty payable account over a period is as a result of the warranty expense for the period and the warranty payments made during the period.
Given that the company estimate warranty expense at 4.5% of sales, the estimated warranty for the period is the expense recorded in the income statement. This is equivalent to
= 4.5% * $305,000
= $13,725
Answer:
a. 45%
Explanation:
The sum of total probabilities is always equal to 1. Since in the given question only three probabilities are given, so the sum of these three probabilities shall be 1 which is represented as follows by the equation:
probability of boom+probability of normal+probability of recession=1
In the given question:
probability of boom=30%
probability of recession=25%
30%+probability of normal+25%=1
Probability of normal=1-25%-30%=45%
So based on the above calculations, the answer shall be a. 45%
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