ring Year 1, its first year of operations, Benitez Co. reported sales of $800,000. At the end of Year 1, the company estimated its warranty obligation at 3% of sales. During Year 1, the company paid $13,000 cash to settle warranty claims. Which of the following statements is true? Multiple Choice Warranty expenses would decrease net earnings by $24,000 in Year 1. Cash decreased by $13,000 as a result of the accounting events associated with werrantics in Year 1 The warranties payable account has a credit balance of $11,000 at the end of Year 1 All of these answer choices are correct