Which of the following answers indicates the effect of the February 12, 2014 entry on the financial statements of Lucky Corporation?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Which of the following answers indicates the effect of the February 12, 2014 entry on the financial statements of Lucky Corporation? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Paying $215 cash and using $60 of inventory to satisfy a warranty claim decreases assets (cash by $215 and inventory by $65) and decreases liabilities (warranties payable) by $275. The $215 outflow is reported as an operating activity on the statement of cash flows.

Which of the Following Answers Indicates the Effect of the February