Company reported sales of $520,000. At the end of Year 1, the company estimated its warranty obligation at 3% of sales. Durin Year 1, the company paid $12,300 cash to settle warranty claims. Which of the following statements is true?

During Year 1, its fist year of operations, Benitez Company reported sales of 5520,000 . At the end of Year 1, the company estimated its warranty obligation at 3\% of saies. During Year 1, the company paid $12,300 cash to settle warranty claims. Which of the following statements is true? Mutiple Chaice All of these anwwer choices are correct. Warranty expenses would dectease net earings by $15.600 in Year t The warranties peyatie account has a balance of $3,300 at the end of Year 1. Cash cecteased by 510,300 as a result of the accounting events assocuted weth warranties in Year 1