Redondo spent $4,000 on new furniture for their home. They paid $1,000 in cash, received a $500 discount, and financed the remaining amount. They also spend $100 on utilities and $50 on home maintenance monthly. What is the liability in this scenario?

The $500 discount reduces the $4,000 furniture cost to $3,500. After the $1,000 cash payment, the remaining $2,500 is financed, creating a liability because it must be repaid. The monthly utility and maintenance costs are expenses, not the furniture loan liability. The correct choice is the $2,500 financed loan.

AI-written and checked against the verified answer.