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During the Month,Northwest Electric Paid $582 to Settle Warranty Claims

Question 16

Multiple Choice

During the month,Northwest Electric paid $582 to settle warranty claims.Northwest uses an estimated warranty account.The journal entry to record the payment would have been:


A) debit Estimated warranty payable,$582;credit Cash,$582.
B) debit Warranty expense,$582;credit Estimated Warranty payable,$582.
C) debit Estimated warranty payable,582;credit Warranty expense,$582.
D) debit Warranty expense,$582;credit Cash,$582.

Correct Answer:

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