State Street Digital, Inc. starts the year with $ 2 comma 700 in its Estimated Warranty Payable account. During the year, there were $ 219 comma 000 in sales and $ 5 comma 000 in warranty repair payments. State Street Digital estimates warranty expense at 4 % of sales. The Warranty Expense for the year is .

$8,760

Explanation:

The movement in the warranty payable account balance over a period is as a result of the additional warranty expenses payable due to sales and the amount paid as warranty expense during the period.

Given that State Street Digital estimates warranty expense at 4 % of sales, the Warranty Expense for the year

= 4% * $219,000

= $8,760

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

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