Assume that EMC will increase its estimated warranty expense.

REV is Product revenues COS is Cost of product sales SGA is Selling, general and administrative expenses WX is Estimated warranty expenses WC is Warranty claims charged to the accrual AWC is Accrued warranty costs

Which of the following journal entries would be correct?

DR CR

a.

COS

AWC

b.

AWC

WC

c.

WX

AWC

d.

AWC

COS

e.

REV

COS

f.

WX

WC

g.

COS

REV

h.

AWC

WX