During June, Vixen Company sells $850,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 3% of the selling price Customers returned $14,000 of merchandise for warranty replacement during the month. The entry to record the estimated warranty liability at the end of the month is, Multiple Choice Debit Warranty Expense $11,500, credit Estimated Warranty Liability 511,500 Debit Warranty Expense $14.000, credit Estimated Warranty Liability $14.000 Debit Warranty Expense $25,500 credit Estimated Warranty Liability $25,500. Adonis Corporation issued 10-year, 7% bonds with a par value of $160,000. Interest is paid semiannually. The market rate on the issue date was 6%. Adonis received $171,906 in cash proceeds. Which of the following statements is true? Multiple Choice Adonis must pay $160,000 at maturity plus 20 interest payments of $5,600 each Adonis must pay 5171,906 at maturity and no interest payments Adonis must pay $171.906 at maturity plus 20 interest payments of $5.600 each