13. Home Appliances Inc. sells electric appliances, including refrigerators. The company`s experience in recent years has indicated that warranty costs average 3.1% of sales. During March 2022, sales of refrigerators were $3,000,000 and cash payments for warranty service on refrigerators were $84,000. The journal entry to record the warranty expense for April is:

A. Db. Warranty expense 84,000 Cr.Cash 84,000

B. Db. Liability for warranties 84,000. Cr.Cash 84,000

C. Db. Warranty expense 93,000. Cr. Liability for warranties 93,000

D. Db. Warranty expense 93,000. Cr. Cash 93,000

14. Aspinall Company has a current ratio of 1.5. How would the payment in cash of an account payable affect the current ratio and the debt to equity ratio, respectively?

Current Ratio Debt to Equity

A. Increase No change

B. Decrease No change

C. Increase Decrease

D. Decrease Decrease