Penelope wants to buy a new car and can afford to do so. However, on the way to the car dealership, she sees an ad for a vacation trip that is
half the price of the car. She stops and buys the trip instead. Evaluate Penelope's plan.

Right medical introduced a new implant that carries a five-year warranty against manufacturer’s defects. based on industry experience with similar product introductions, warranty costs are expected to approximate 2% of sales. sales were $8 million and actual warranty expenditures were $42,750 for the first year of selling the product. what amount (if any) should right report as a liability at the end of the year?