Quimby Co.sells goods to customers with a three-year warranty.On December 31,2012,Quimby made the appropriate year-end adjustment to record the warranty expense related to the goods sold during the year.During 2013,Quimby paid $14,500 cash to satisfy warranty claims.Show the effects of the 2012 warranty settlements.

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The Answer of Quimby Co.sells goods to customers with a three-year warranty.On December 31,2012,Quimby made the appropriate year-end adjustment to record the warranty expense related to the goods sold during the year.During 2013,Quimby paid $14,500 cash to satisfy warranty claims.Show the effects of the 2012 warranty settlements.

Quimby CoSells Goods to Customers with a Three-Year Warranty