Benitez Company had sales of $280,000 in Year 1. The company expects to incur warranty expenses amounting to 2% of sales. There were $3,600 of warranty obligations paid in cash during Year 1. Based on this information: Multiple Choice Cash would decrease by $3,600 as a result of the accounting events associated with warranties in Year 1 The warranties payable account would increase by $2.000 in Year 1 All of these answer choices are correct Warranty expenses would decrease net earnings by $5,000 in Year 1