30) A-Plus Appliances started business this year and sells dishwashers with a four-year warranty. Sales revenue for dishwashers this year is $98,000, and the firm estimates warranty expense to be 4.5% of revenues. If A-Plus experienced no warranty claims from customers during the year, what is the firm's total estimated warranty payable at the end of the year? (Round final answer to the nearest dollar.) A) $4,410 B) $1,103 C) $1,614 D) $3,459 31) The matching principle requires firms to report Warranty Expense: A) In the same period when the firm records the revenue related to that warranty B) In the period before the firm records the revenue related to that warranty C) In the period after the firm records the revenue related to that warranty D) In the long-term assets section of the balance sheet 32) State Street Digital, Inc. started the year with $3,400 in its Estimated Warranty Payable account. During the year, there were $222,000 in sales and $5,400 in warranty repair payments. State Street Digital estimates warranty expense at 2% of sales. The Warranty Expense for the year is: A) $5,400 B) $4,440 C) $3,400 D) $2,440 33) A contingency is considered to have a remote possibility of becoming an actual liability. If this is not reported on the balance sheet or in the notes to the financial statements, what effect would it have on the firm's financial reporting? A) There would be no effect. B) The liabilities on the balance sheet would be understated. C) The information about the transaction would be inadequately disclosed. D) The firm's net income would be understated. 34) Which of these statements is TRUE of a contingent liability? A) It is an actual liability that is difficult to estimate. B) It is an actual liability that depends on a past event. C) It is a potential liability that depends on a future event. D) It is a liability resulting from a lawsuit that was settled in court