a company estimates that warranty expense will be 4% of sales. the companys sales for the current period is…

a company estimates that warranty expense will be 4% of sales. the companys sales for the current period is $185,000. the current periods warranty expense is:\na) $7,400.\nb) $4,700.\nc) $74,000.\nd) $47,000.\ne) $74.

a company estimates that warranty expense will be 4% of sales. the companys sales for the current period is $185,000. the current periods warranty expense is:\na) $7,400.\nb) $4,700.\nc) $74,000.\nd) $47,000.\ne) $74.

Answer

Explanation:

Step1: Identify the formula

Warranty expense = Sales amount × Warranty - expense percentage

Step2: Substitute the values

Sales amount = $185000$, Warranty - expense percentage = 4%=$0.04$ Warranty expense = $185000\times0.04$

Step3: Calculate the result

$185000\times0.04 = 7400$

Answer:

A. $7,400$