During the month,Evergreen Roofing settled $300 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 $300;credit Cash $300.
B) debit Estimated Warranty Payable $300;credit Inventory $300.
C) debit Warranty Expense $300;credit Estimated Warranty Payable $300.
D) debit Warranty Expense $300;credit Cash $300.
Correct Answer:
Verified
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