QUESTION 40

1. XYZ Inc. sells a used vehicle for $10,000 with a 2-year warranty. The company estimates that warranty costs will be equal to 5% of sales. Which of the following would be credited in the journal entry to record warranty expense?

   	a.	Estimated Warranty Liability $10,000
   	b.	Warranty Expense $10,000
   	c.	Estimated Warranty Liability $500
   	d.	Warranty Expense $500

2.5 points

QUESTION 41

1. XYZ Inc.'s employees' gross pay for the 7/31 pay period is equal to $8,000. Total withholdings for the period are $1,200 and net pay is therefore $6,800. Which of the following will be credited in the journal entry to accrue payroll?

   	a.	Salaries Payable $8,000
   	b.	Salaries Payable $6,800
   	c.	Salaries Expense $6,800
   	d.	Salaries Expense $8,000