During september, excom sold 100 radios for $50 each. each radio cost excom $30 to purchase, and carried a two-year warranty. if 5% typically need to be replaced over the warranty period and one is actually replaced during september, for what amount in september would excom debit product warranty expense?

$150

Explanation:

The Warranty Expense account is a liability account and it must include all the estimate costs associated to the merchandise sold:

100 radios were sold and the company estimates to replace 5% or them = 100 x 5% = 5

the cost of replacing 5 radios = 5 radios x $30 per radio = $150

Answer is A.

Explanation:

they don't change