The deck repair selection sheet carries a $7,800 allowance, but the owner-selected item costs $7,120 with no markup on allowance credits. What allowance credit should be documented?
Correct Answer
B) $680 credit.
The selected product is $680 below the allowance, so the documented adjustment is a $680 credit.
Why This Is the Correct Answer
The selected product is $680 below the allowance, so the documented adjustment is a $680 credit.
Why the Other Options Are Wrong
Option A: $680 increase.
$680 increase. is not aligned with the supported result for allowance reconciliation; it has the wrong label or classification even if the number looks close.
Option C: $7,120 credit.
$7,120 credit. is above the supported result for allowance reconciliation; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $14,920 total.
$14,920 total. is above the supported result for allowance reconciliation; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Allowance Reconciliation drawer for Reconciling Billing: label product 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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