During Year 1, its first year of operations, Benitez Co. reported sales of $620,000. At the end of Year 1, the company estimated its warranty obligation at 2% of sales. During Year 1, the company paid $8,400 cash to settle warranty claims. Which of the following statements is true?A. Cash decreased by $8,400 as a result of the accounting events associated with warranties in Year 1 B. Warranty expenses would decrease net earnings by $26,400 in Year 1.
C. All of these answers are correct
D. The warranties payable account has a balance of $8,400 at the end of Year 1

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.