During Year 1 , its first year of operations, Benitez Company reported sales of $500,000. At the end of Year 1 , the company estimated its warranty obligation at 4% of sales. During Year 1, the company paid $12,000 cash to settle warranty claims. Which of the following statements is true? Multiple Cribice The warranties poybble account has a credit batance of $8.000 at the end of Year 1 . All of these answer choices are correct. Cash decreased by $12,000 as a result of the accounting events associated with warranties in Year 1. Warranty expenses would decrease net earnings by $20,000 in Yeat 1