Tom Toys has sales of $250,000 in Year 1. Tom warrants its products and estimates warranty expense to be 2% of sales. Which of the following shows how the year end adjusting entry for warranty expense would affect the company's financial statements?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Tom Toys has sales of $250,000 in Year 1. Tom warrants its products and estimates warranty expense to be 2% of sales. Which of the following shows how the year end adjusting entry for warranty expense would affect the company's financial statements? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

The Answer of Tom Toys has sales of $250,000 in Year 1. Tom warrants its products and estimates warranty expense to be 2% of sales. Which of the following shows how the year end adjusting entry for warranty expense would affect the company's financial statements? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Tom Toys Has Sales of $250,000 in Year 1