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During the month, Northwest Electric paid $582 to settle warranty claims. Northwest uses an ...

During the month, Northwest Electric paid $582 to settle warranty claims. Northwest uses an estimated warranty account. The journal entry to record the payment would have been:
A) debit Estimated warranty payable, $582; credit Cash, $582.
B) debit Warranty expense, $582; credit Estimated Warranty payable, $582.
C) debit Estimated warranty payable, 582; credit Warranty expense, $582.
D) debit Warranty expense, $582; credit Cash, $582.

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Financial Accounting

Edition: 3^rd

Authors: Kemp, Waybright

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