Buffalo,Inc.reported sales revenue for 2017 of $903,000.The products were sold with a nine-month warranty.Members of Buffalo's management estimate that the cost of the warranty will be equal to 7% of sales revenue.Which of the following will be included in the entry to record the actual amounts paid out as a result of warranty claims?
A) a debit to Estimated Warranty Payable for the actual amount of payments
B) a credit to Estimated Warranty Payable for $63,210
C) a debit to Estimated Warranty Payable for $63,210
D) a debit to Warranty Expense for the actual amount of payments
Correct Answer:
Verified
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