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Business, 06.12.2019 19:31 ggdvj9gggsc

Benitez co. had sales of $800,000 in 2016. the company expects to incur warranty expenses amounting to 3% of sales. there were $13,000 of warranty obligations paid in cash during 2016. based on this information:

a. warranty claims would decrease net earnings by $4,000 in 2016.

b. cash would increase by $17,000 as a result of the accounting events associated with warranties in 2016.

c. the warranties payable account would increase by $11,000 in 2016.

d. choose either a, b, or c

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