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During the month, Inline Industries paid $582 to settle warranty claims. Inline uses an estimated warranty account. The journal entry to record the payment would

During the month, Inline Industries paid $582 to settle warranty claims. Inline uses an estimated warranty account. The journal entry to record the payment would have been:

  • A. debit Warranty expense, $582; credit Cash, $582.
  • B. debit Warranty expense, $582; credit Estimated Warranty payable, $582
  • C. debit Estimated warranty payable, $582; credit Warranty expense, $582
  • D. debit Estimated warranty payable, $582, credit Cash, $582

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