b. In Year 8 ECU Corporation reduces its WARRANTY PAYABLE by honoring warranty claims from customers/ by paying $120,000 CASH to an out-sourcing repair service business / and by delivering $135,000 of new products from its INVENTORY to replace products that could not be repaired. Phrase 1st: 2nd: Account Category Affect Dr. or Cr. AL SERE contra + Dr Cr AL SERE contra + - Dr Cr 3rd: AL SERE contra- + Dr Cr Date Accounts Debit Credit