During Year 1, its first year of operations, Benitez Co. reported sales of $360,000. At the end of Year 1, the company estimated its warranty obligation at 2% of sales. During Year 1, the company paid $4,800 cash to settle warranty claims. Which of the following statements is true? Multiple Choice O Warranty expenses would decrease net earnings by $7,200 in Year 1. All of these answer choices are correct The warranties payable account has a balance of $2.400 at the end of Year 1 O Cash decreased by $4,800 as a result of the accounting events associated with warranties in Year 1