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:
Verified
Q42: Which of the following accurately describes how
Q43: The disclosure of a contingent liability only
Q44: The disclosure of a contingent liability in
Q45: KLR Oil Company is being investigated, following
Q46: Warranty expense is always recorded in the
Q48: The need to create an estimated warranty
Q49: Southeast Plumbing had cash sales for the
Q50: During the month, Southeast Plumbing paid $600
Q51: TNT Construction had cash sales for the
Q52: A company that cosigns on a loan
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents