Saran Digital Inc

question 108

Multiple Choice

Saran Digital Inc.starts the year with $2,500 in its Estimated Warranty Payable account.During the year,there were $210,000 of sales and $4,500 of warranty repair payments.Saran Digital estimates warranty expense at 2% of sales.The journal entry to record this will include a debit to Warranty Expense for ________.

• A)$4,200
• B)$4,500
• C)$2,500
• D)$2,200