Help Save & Ext Submit Tom Toys has sales of $250.000 in Year 1. Tom warrants its products and estimates Warranty expense to be 2% of sales Which of the following shows how the year end adjusting entry for warranty expense would affect the company's financial statements? Balance Sheet Income Statement Assets no A B. C. D n/a (5,000) n/a Liabilities (5,000) 5, eee n/a 5,000 Stockholders Equity (5,000) (5,000) (5.00) (5,000) Revenue n/a n/a n/a n/a - Expense = Net Income 5, eee (5,000) 5.000 (5.00) 5,000 (5,000) 5,000 (5,000) Statement of Cash Flows n/a (5.00) OA n/a n/a Multiple Choice Option Orion Option