Northwest Electric Had Cash Sales for the Month Totaling $73,200

question 143

Multiple Choice

Northwest Electric had cash sales for the month totaling $73,200.Northwest offers a 6-month warranty on its services.If Northwest estimates warranty claims will equal 2% of sales,the journal entry to record the estimated warranty expense for the month is:

• A)debit Warranty expense,$1,464;credit Cash,$1,464.
• B)debit Warranty expense,$1,464;credit Estimated warranty payable,$1,464.
• C)debit Warranty expense,$1,464;credit Sales revenue,$1,464.
• D)debit Estimated warranty payable,$1,464;credit Warranty expense,$1,464.

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