An appliance allowance is $4,800. The owner selects appliances costing $3,900 with no markup on credits. What adjustment is due?
Correct Answer
C) $900 credit.
The selected appliances are $900 below the allowance, so the adjustment is a $900 credit.
Why This Is the Correct Answer
The selected appliances are $900 below the allowance, so the adjustment is a $900 credit.
Why the Other Options Are Wrong
Option A: $600 credit.
$600 credit. is below the supported result for allowance reconciliation; it likely uses the wrong base, period, or account bucket.
Option B: $800 credit.
$800 credit. is below the supported result for allowance reconciliation; it likely uses the wrong base, period, or account bucket.
Option D: $900 increase.
$900 increase. is not aligned with the supported result for allowance reconciliation; it has the wrong label or classification even if the number looks close.
Memory Technique
Allowance Reconciliation drawer for Reconciling Appliance: label appliances before counting dollars.
Reference Hint
Study anchor (closed-book): memorize Allowance reconciliation from CSLB 2026 Law Book; CSLB Home Improvement Contracts / B&P Code Section 7159 home improvement contract requirements; know the rule or calculation trigger without relying on exam-room lookup.
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