Benitez Company had sales of $500,000 in Year 1. The company expects to incur warranty expenses amounting to 4% of sales. There were $12,000 of warranty obligations paid in cash during Year 1, Based on this information: Multiple Choice Cash would decrease by $12,000 as a result of the accounting events associated with warranties in Year 1 All of these answer choices are correct The warranties payable account would increase by $8,000 in Year 1 Warranty expenses would decrease net earnings by $20,000 in Year 1.