Benitez Company had sales of $$800,000$ in Year $1.$ The company expects to incur warranty expenses amounting to $3\%$ of sales. There were $$13,000$ of warranty obligations paid in cash during Year $1.$ Based on this information:

Multiple Choice

Warranty expenses would decrease net earnings by $$24,000$ in Year $1.$

Cash would decrease by $$13,000$ as a result of the accounting events associated with warranties in Year $1.$

The warranties payable account would increase by $$11,000$ in Year $1.$

All of these answer choices are correct.