Simple MCQ question from Financial Accounting. Please solve it ASAP!!!

QUESTION 43 In December Year 1. Lucas Corporation sold merchandise for $10,000 cash. Lucas estimated that the warranty obligation relating to this sale is $700. On February 12. Year 2, Lucas paid cash of $550 to settle a related warranty claim by this customer. Which of the following summarizes the effect of the recognition of the warranty obligation on the elements of the Year 1 financial statements? Assets NA (700) (700) NA Liab (700) NA (700) 700 A. B. C. D Equity 700 (700) NA (700) Expense NA 700 + Revenue 700 NA NA NA - Net Inc. 700 (700) NA 700) Cash Flow NA (700) OA (700) OA NA NA + - + - 700 Option A Options Option Option Hide your screen Stop sharing In December Year 1. Lucas Corporation sold merchandise for 510.000 cash. Lucas estimated that the warranty obligation relating to this sale is $700. On February 12. Year 2. Lucas paid cash of $550 to settle a related warranty claim by this customer. + - Which of the following summarizes the effect of the payment of cash to settle the warranty claim in Year 2 on the elements of the financial statements? Assets Liab. Equity Revenue Expense Net Inc. Cash Flow A. (430) (550) (120) NA 120 (120) (550) OA B. (550) (550) NA NA NA NA (550) OA C. (550) NA (550) NA 550 (550) (550) FA D. (550) NA (550 NA 550 (550) (550) OA Option A + - + + - O Option B Option Option D On January 1, Year 2. Julio Company's Allowance for Doubtful Accounts had a balance of 5600. During Year 2, Kincaid wrote off 5400 of receivables as uncollectible. At December 31 Year 2 the company's outstanding accounts receivable totaled $50,000 and the company estimated 1% of the outstanding receivables to be uncollectible. What is the amount of the uncollectible accounts expense to be recognized by the company in year 2? $200 $300 $500 5400