Multiple Choice
During the month, Southeast Plumbing paid $600 to settle warranty claims. Southeast uses an estimated warranty account. The journal entry to record the payment would have been:
A) debit Estimated warranty payable, $600; credit Cash, $600.
B) debit Warranty expense, $600; credit Estimated Warranty payable, $600.
C) debit Estimated warranty payable, $600; credit Warranty expense, $600.
D) debit Warranty expense, $600; credit Cash, $600.
Correct Answer:
Verified
Correct Answer:
Verified
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