rusty Used Cars includes a one-year warranty covering parts and labour in the price of all the used cars that it sells. Warranty expense is estimated at 2% of the selling price of the car, and is recorded when the car is sold. On October 12, 2020, Trusty sold a car for $30,000. On March 16, 2021, the car was returned for warranty repairs. The cost of the repairs was $200 in parts and $150 in labour. When recording the March 16 event, Trusty would debit Warranty Expense by:

Question 4 options:

$0

$600

$200

$350