An allowance is $9,300, and the final selection costs $8,475. What credit should be documented?
Correct Answer
D) $825 credit.
The selection is $825 below the allowance, so an $825 credit should be documented.
Why This Is the Correct Answer
The selection is $825 below the allowance, so an $825 credit should be documented.
Why the Other Options Are Wrong
Option A: $575 credit.
$575 credit. is below the supported result for allowance reconciliation; it likely omits part of the approved scope, cap, credit, or holdback.
Option B: $725 credit.
$725 credit. is below the supported result for allowance reconciliation; it likely omits part of the approved scope, cap, credit, or holdback.
Option C: $775 credit.
$775 credit. is below the supported result for allowance reconciliation; it likely omits part of the approved scope, cap, credit, or holdback.
Memory Technique
Selection before dollars; dollars before balance in Closing Finish.
Reference Hint
Study anchor (closed-book): memorize Allowance reconciliation from CSLB 2026 Law Book; CSLB Home Improvement Contracts / Business and Professions Code Section 7159 home improvement contract requirements; know the rule or calculation trigger without relying on exam-room lookup.
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