King Sales Sells a Certain Product for $20,000 $\quad$ 35,000
Warranty Revenue

Multiple Choice

King Sales sells a certain product for $20,000. Included in this price is an implied service contract of $600. Fifty machines were sold in 2014. Warranty expense incurred during 2014 amounted to $35,000. The company uses the sales warranty accrual method. Which entry would probably not be made in 2014?

A) Unearned Warranty Revenue $\quad$ 35,000
Warranty Revenue $\quad$ 35,000

B) Cash $\quad$$\quad$ 1,000,000
Sales $\quad$$\quad$ 970,000
Unearned Warranty Revenue $\quad$$\quad$ 30,000

C) Cash $\quad$$\quad$ 30,000
Warranty Revenue $\quad$$\quad$ 30,000

D) Warranty Expense $\quad$$\quad$ 35,000
Cash $\quad$$\quad$$\quad$ 35,000