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During the Month, Evergreen Roofing Settled $600 in Warranty Claims

Question 47

Multiple Choice

During the month, Evergreen Roofing settled $600 in warranty claims by replacing the defective flashing. Evergreen uses an estimated warranty account. The journal entry to record the settled claims would have been:


A) debit Estimated Warranty Payable $600; credit Cash $600.
B) debit Estimated Warranty Payable $600; credit Inventory $600.
C) debit Warranty Expense $600; credit Estimated Warranty Payable $600.
D) debit Warranty Expense $600; credit Cash $600.

Correct Answer:

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