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During Year 1, its first year of operations, Benitez Co. reported sales of $380,000. At...

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Accounting

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During Year 1, its first year of operations, Benitez Co. reported sales of $380,000. At the end of Year 1 , the company estimated its warranty obligation at 3% of sales. During Year 1 , the company paid $5,100 cash to settle warranty claims. Which of the following statements is true? Multiple Choice Warranty expenses would decrease net earnings by $11,400 in Year 1 . Cash decreased by $5,100 as a result of the accounting events associated with warranties in Year 1 . The warranties payable account has a balance of $6,300 ot the end of Year 1 . All of these answer choices are correct

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