Plz solve A and B !! Al Fathma LLC manufactures a line of equipment that it sells to wholesalers. The company sold 3,000 items of this typethis year, which also has a one-year guaranteethe equipment fails. Based on experience, 25% of the items sold arereturned for repairs.Minor defects - 35% of the items returned can be repaired at a cost of OMR 120.Major defects - 65% of the items need significant repair at a cost of OMR 150.a. What should be the amount of provisions to be made in case of minor defects?None of the listed choicesOMR 31,500OMR 306,000None of the listed choicesOMR 180,000OMR 126,000OMR 73,125Vhat should be the amount of provisions to be made in case of major defects?OMR 306,000 What should be the amount of provisions to be made in case of major defects?None of the listed choicesOMR 31,500OMR 306,000None of the listed choicesOMR 180,000OMR 126,000OMR 73,125OMR 306,000

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Al Fathma LLC manufactures a line of equipinen this year, which also has a one-year quarantee if the equipment fails. Based on experience, 25% of the items sold are returned for repairs. Minor defects-35% of the items returned can be repaired at a cost of OMR 120. Major defects - 65% of the items need significant repair at a cost of OMR 150. What should be the amount of provisions to be made in case of minor defects?

Al Fathma LLC manufactures a line of equipinen this year, which also has a one-year quarantee if the equipment fails. Based on experience, 25% of the items sold are returned for repairs. Minor defects-35% of the items returned can be repaired at a cost of OMR 120. Major defects - 65% of the items need significant repair at a cost of OMR 150. What should be the amount of provisions to be made in case of minor defects?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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