Indicate how each event affects the financial statements. Use the following letters to record your answer in the box shown below. If an event increases one account and decreases another account equally within the same element, record I/D. If an event has no impact on the element, record NA.You do not need to enter amounts.Increase = I Decrease = D Not Affected = NAKelly Company sells goods to customers with a three-year warranty. Previously, Kelly made the appropriate year-end adjustment to record the warranty expense related to the goods sold during the preceding year. During the current year, Kelly paid $4,000 cash to satisfy warranty claims. Show the effects of the current year payments to satisfy warranty claims.

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The Answer of Indicate how each event affects the financial statements. Use the following letters to record your answer in the box shown below. If an event increases one account and decreases another account equally within the same element, record I/D. If an event has no impact on the element, record NA.You do not need to enter amounts.Increase = I Decrease = D Not Affected = NAKelly Company sells goods to customers with a three-year warranty. Previously, Kelly made the appropriate year-end adjustment to record the warranty expense related to the goods sold during the preceding year. During the current year, Kelly paid $4,000 cash to satisfy warranty claims. Show the effects of the current year payments to satisfy warranty claims.

Indicate How Each Event Affects the Financial Statements