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Business, 24.06.2020 19:01 lily2019

During Year 1, its first year of operations, Benitez Co. reported sales of $620,000. At the end of Year 1, the company estimated its warranty obligation at 2% of sales. During Year 1, the company paid $8,400 cash to settle warranty claims. Which of the following statements is true?A. Cash decreased by $8,400 as a result of the accounting events associated with warranties in Year 1 B. Warranty expenses would decrease net earnings by $26,400 in Year 1.
C. All of these answers are correct
D. The warranties payable account has a balance of $8,400 at the end of Year 1

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During Year 1, its first year of operations, Benitez Co. reported sales of $620,000. At the end of Y...

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