10. (LO 15-5) Macy Furniture sells a line of products that carry a three-year warranty against defects at no extra charge. Based on industry experience, the estimated warranty costs are 9% of sales. Sales and actual warranty expenditures for 2020 were $200,000 and $1,500, respectively. The amount of warranty expense that Macy Furniture should report in its 2020 income statement is A. $18.000. B. $16.500. C. $19,500. D. S1,500 11. (LO 15-6) If Red Oak, using the perpetual inventory system, sold some inventory at a price lower than the cost, the company's current ratio and acid-test (quick) ratio would 12. (LO 16-1) On January 1, 2020, Anderson Company issued $50,000,5-year, 9% convertible bonds payable. cash interest payable semiannually to yield 10%. The stated interest rate per interest period is A. 4.5% B. 5% C. 9% D. 10%. 13. (LO 16-2) Interest payment is: A. The effective interest rate times the amount of the debt outstanding during the interest period. B. The effective interest rate times the face amount of the debt. C. The stated interest rate times the amount of the debt outstanding during the interest period. D. The stated interest rate times the face amount of the debt. 14. (LO 16-4 and 5) How is the carrying amount of a bond payable affected by amortization of the following