In 2016, Scranton, Inc sold 2,000 carpets for $50 each. The carpets carry a 2-year warranty for repairs. Scranton estimates that repair costs will average 3% of the total selling price. What is the amount that would be recorded in the warranty liability account as a result of selling the carpets during 2016?
a. $1,500
b. $3,000
c. $50
d. No liability should be recorded until the carpets are returned for repairs.
b
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What will be an ideal response?
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________ strategies can be intensive, selective, or exclusive.
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What will be an ideal response?