HU company offers a six-month warranty for all its products. For the year xxl 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 S6,100 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