No Rust car sales provides a one year labour and parts warranty with every car sold and at 1 July 2020, at the beginning of the financial year, had a provision of $8,000 to cover warranty claims. On 30 March 2021 $1,800 was paid out for repairs for vehicles under warranty. What is the correct entry to record the payment of the claims?

Group of answer choices

A. Debit provision for warranty $1,800; credit bank $1,800

b. Debit warranty expense $1,800; credit provision for warranty $1,800

c. Debit provision for warranty $1,800; credit warranty expense $1,800

d. Debit warranty expense $1,800; credit bank $1,800

Answer rating: 100% (QA)

A Debit provision for warranty 1800 credit bank 180... View the full answer