How much did Maverick Company sell the extended warranties for Rollomatics?

The correct answer indicates that Maverick Company sold extended warranties for Rollomatics for a total of 18,000. This figure likely reflects the revenue generated from the sales of these warranties, which can often be significant in the context of consumer electronics, appliances, or vehicles, where extended warranties are commonly offered.

In financial accounting, it’s essential to recognize that such warranties serve as a way for companies to provide additional coverage for their products beyond the standard warranty period, allowing them to generate additional revenue. The amount reported is likely derived from either the number of warranties sold multiplied by the price of each warranty or from a report detailing total sales for that specific product line.

Understanding the context of warranty sales is also important; they can provide insights into customer trust in a product's reliability and the company's ability to predict future revenue streams. This information might also relate to how these warranties are recognized in the financial statements, typically as a liability until the warranty service is rendered.

Equipped with this knowledge of revenue recognition and product warranty practices, one would be able to understand Maverick Company's approach better and appreciate the financial implications of such sales on their overall performance.