uestion 12 On August 1, 2020, Alba Trading sold a machine for $13,000 cash with a two-year parts warranty. On March 1, 2021, the machine requires on-site repairs which cost $200 of the repair parts inventory. Alba estimates warranty costs to be 4% of dollar sales. In 2020, Alba reports warranty expense of: OA. $ 720. O B. $ 320. OC.$ 520. O D. $ 200.
uestion 12 On August 1, 2020, Alba Trading sold a machine for $13,000 cash with a two-year parts warranty. On March 1, 2021, the machine requires on-site repairs which cost $200 of the repair parts inventory. Alba estimates warranty costs to be 4% of dollar sales. In 2020, Alba reports warranty expense of: OA. $ 720. O B. $ 320. OC.$ 520. O D. $ 200.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Question 12
On August 1, 2020, Alba Trading sold a machine for $13,000 cash with a two-year parts warranty. On March 1, 2021, the machine requires on-site repairs which cost $200 of the repair
parts inventory. Alba estimates warranty costs to be 4% of dollar sales. In 2020, Alba reports warranty expense of:
O A. $ 720.
O B. $ 320.
O C. $ 520.
O D. $ 200.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F17901639-5f6b-4d91-829b-0d740a586506%2Fdc10f85a-fbf0-47c6-98c0-5cb776b07725%2Fsaeetm9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 12
On August 1, 2020, Alba Trading sold a machine for $13,000 cash with a two-year parts warranty. On March 1, 2021, the machine requires on-site repairs which cost $200 of the repair
parts inventory. Alba estimates warranty costs to be 4% of dollar sales. In 2020, Alba reports warranty expense of:
O A. $ 720.
O B. $ 320.
O C. $ 520.
O D. $ 200.
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