9.4-*PLEASE ANSWER ALL 5 QUESTIONS*

5 multiple choice questions.

1.

2. TRUE OR FALSE

3.

4.

5.

sset use transactions. True or False warranty claim by this customer. Which of the following reflects the effect of the year-end adjustment to record estimated warranty expense? f a company offers a warranty on the products it sells, the company records the warranty expense at the time that service is provided to customers under the terms of the warranty. True or False Which of the following shows how paying off a warranty obligation will affect a company's financial statements? Clarion Company provides a one-year warranty on all merchandise it sells. In Year 1 , the company recorded sales of $500,000. It estimated that the warranty costs on these sales would amount to $2,000. In July of Year 2 , Clarion paid $250 to satisfy a warranty claim. Indicate whether each of the following statements is true or false. a) Clarion's adjustment to record the warranty at the end of Year 1 decreased total assets and total stockholders' equity. b) Clarion's adjustment to record the warranties at the end of Year 1 increased Clarion's total liabilities. c) The transaction, dated in July of Year 2, decreased total assets and net income for Year 2. d) The $250 payment to satisfy a warranty claim in July of Year 2, decreased Clarion's total liabilities. e) The adjustment to record the warranty at the end of Year 1 did not affect Clarion's revenue for the year