HU company offers a six-month warranty for all its products. For the year xoi the total sales were $528,000, and the estimate of warranty costs is based on the 2% of sales. During the year, the warranty costs paid were $6,100. (4 points) 16. The sales revenue for the year were registered, how this event will affect the accounting equation (Financial Statements-horizontal)? a) Decrease Cash and decrease Retained Earnings by $528,000 in the Balance Sheet Increase Warrant Expense and decrease Net Income by $528,000 in the Income Statement The cash flow will be affected by $528,000 outflow. b) Increase Cash and increase Retained Earnings by $528,000 in the Balance Sheet. Increase Sales Revenue and increase Net Income by $528,000 in the Income Statement. The cash flow will be affected by $528,000 inflow. c) Increase Cash and increase Retained Earnings by $528,000 in the Balance Sheet Decrease Sales Revenue and decrease Net Income by $528,000 in the Income Statement The cash flow will be affected by $528,000 outflow. (4 points) 17. The warranty costs were registered, how this event will affect the accounting equation (Financial Statements- horizontal)? a) Decrease Cash and decrease Retained Earnings by $6,100 in the Balance Sheet The cash flow will be affected by $6,100 outflow. b) Decrease Cash and decrease Warranty Payable by $6,100 in the Balance Sheet. Decrease Warranty Expense and decrease Net Income by $6,100 in the Income Statement The cash flow will be affected by $6,100 outflow. c) Decrease Cash and decrease Warranty Payable by $6,100 in the Balance Sheet. The cash flow will be affected by $6,100 outflow