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Question - Pushkin Corporation sells toasters with an embedded warranty. During 20X1, Pushkin sold toasters and correctly recorded $4,000 in warranty expense. During 20X2, Pushkin spent $3,000 repairing toasters. At the end of 20X2, Pushkin determines that the warranty payable account should have a final balance of $1,200. What change should be made to warranty expense?
a. Debit of $100
b. Debit of $200
c. Credit of $400
d. Credit of $200
e. Debit of $500
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