Toyota Company sold 100 cars for OMR 6,000 per car to customers in 2018, with a repair warranty of 5-years. On January 2020 one of the customers returns the car for warranty repair. The company performs this work by replacing parts costing OMR 300. The entry to settle the estimated warranty is:

a. Debit Estimated Warranty Liability OMR 300; Credit Auto Parts Inventory OMR 300

b. None of these

c. Debit Auto Parts Inventory OMR 300; Credit Estimated Warranty Liability OMR 300

d. Debit Auto Parts Inventory OMR 300; Credit Accounts Payable OMR 300

Answer rating: 100% (QA)

a Debit Estimated Warranty Liability OMR 300 Credit Auto Parts Inventory OMR 300 is correct answer R... View the full answer