Ragas, Inc. sold goods with a selling price of $50,000 in the 2017 and estimated 5% warranty expense for the year. Customers complained of defects, and goods with a cost of $1,500 had to be replaced. Which of the following is the correct journal entry for honoring the warranties with goods

.

Estimated Warranty Payable	1,500
Cash		1,500

B.

Estimated Warranty Payable	1,500
Warranty Expense		1,500

C.

Warranty Expense	1,500
Merchandise Inventory		1,500

D.

Estimated Warranty Payable	1,500
Merchandise Inventory		1,500

Answer rating: 100% (QA)

Anwer is D Estimated Warranty Payable 1500 Merchandise Inventory 1500 Explanation When a company ... View the full answer