Puzzles company sells merchandise with a one-year warranty. in year 1, sales consisted of 3,600 units. it is estimated that warranty repairs will average $15 per unit sold, and 40% of the repairs will be made in year 1 and 60% in year 2. in the income statement for year 1, puzzles company should show warranty expense of
a.$0.
b.$32,400.
c.$54,000.
d.$21,600.

c.$54,000.

Explanation:

Warranty expenses should always be recognized in the same period as the products warranted were sold, regardless of when the repairs will be made. Therefore, the warranty expense for Puzzles Company is simply the number of units sold multiplied by the average repair cost per unit:

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

answerjointly by the fed and by the behavior of individuals who hold money and of banks in which money is held;