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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
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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Financial Accounting A Critical Approach
Authors: John Friedlan
4th edition
1259066525, 978-1259066528
