Brooke's Bike Company sold 225 mountain bikes in October.The future estimated warranty cost for the bikes is $25 per bike.The warranty period is one year.The amount of warranty expense for October is $468.75

Question

Quizplus · Accepted Answer

The estimated warranty expense for October is calculated by multiplying the number of bikes sold (225) by the estimated warranty cost per bike ($25), which equals $5,625, not $468.75.

Brooke's Bike Company Sold 225 Mountain Bikes in October