Costa Rica and the United States share the biggest trading relationship between any two nations in the world

Purchases of inventory minus the increase in accounts payable equals

A) cash collected from customers. B) cash collected for sales on credit. C) cash paid to vendors. D) cash paid for inventory. E) none of the above

Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of 4,500 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Hall should show warranty expense of

a. $45,000 b. $13,500 c. $31,500 d. $0