During the Month, Southeast Plumbing Paid $600 to Settle Warranty

question 52

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.

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