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3.) Pushkin Corporation sells toasters with an embedded warranty. During 20X1, Pushkin sold toasters and correctly recorded $4,000 in warranty expense. During 20X2, Pushkin spent

3.) Pushkin Corporation sells toasters with an embedded warranty. During 20X1, Pushkin sold toasters and correctly recorded $4,000 in warranty expense. During 20X2, Pushkin spent $3,000 repairing toasters. At the end of 20X2, Pushkin determines that the warranty payable account should have a final balance of $1,200. What change should be made to warranty expense?

Select one:

a. Debit of $100

b. Debit of $200

c. Credit of $400

d. Credit of $200

e. Debit of $500

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