During September, Excom Sold 100 Radios for $50 Each

Multiple Choice

During September, Excom sold 100 radios for $50 each. Each radio cost Excom $30 to purchase, and carried a two-year warranty. If 5% of the goods sold typically need to be replaced over the warranty period and one is actually replaced during September, for what amount in September would Excom debit Product Warranty Expense?

A) $50
B) $150
C) $30
D) $120