Question: Excom sells radios and each unit carries a two-year replacement warranty. The cost of repair defects under the warranty is estimated at 5% of the

Excom sells radios and each unit carries a two-year replacement warranty. The cost of repair defects under the warranty is estimated at 5% of the sales price. During September, Excom sells 184 radios for $53 each. One radio is actually replaced during September. For what amount in September would Excom debit Product Warranty Expense?

Select the correct answer.

$24

$488

$53

$4,416

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