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Forums › ACCA Forums › ACCA FA Financial Accounting Forums › help plz
Linda paid $1,500 by cheque for warranty service work. A Warranty Liability account had been created in the previous year for warranty expenses.
What would be the journal entry to record the service work?
First when the entry was created that entry was
DR: Warranty expenses a/c
CR: Payable a/c
Now when expenses are paid, entry will be
DR: Payable a/c
CR: Cash a/c
*a/c stands for account
the four choices given in the question are
A Sales
Cash
B Warranty Expense
Warranty Liability
C Warranty Expense
Cash
D Warranty Liability
Cash