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    Multiple choice

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    7. National Appliance Center sells washing machines that carry a three-year warranty against manufacturer's defects. Based on company experience, warranty costs are estimated at $60 per machine. During the year, National sold 48,000 washing machines and paid warranty costs of $340,000. In its income statement for the year ended December 31, National should report warranty expense of
    a. $680,000.
    b. $960,000.
    c. $2,200,000.
    d. $2,880,000.

    8. Millward Corporation's books disclosed the following information for the year ended December 31, 2011:

    Net credit sales ..................................... $1,500,000
    Net cash sales ....................................... 240,000
    Accounts Receivable at beginning of year ............. 200,000
    Accounts Receivable at end of year ................... 400,000

    Millward's accounts receivable turnover is
    a. 3.75 times.
    b. 4.35 times.
    c. 5.00 times.
    d. 5.80 times.

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    https://brainmass.com/business/accounting/multiple-choice-285388

    Solution Summary

    The solution explains two multiple choice questions relating to warranty expense and accounts receivable turnover

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