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Timeless Ltd produces clocks and sells them with a one-year warranty

Accounting

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Timeless Ltd produces clocks and sells them with a one-year warranty. The warranty provision account currently has a debit balance of $4,000. The estimated cost of repairing clocks that have already been sold is $18,000. The adjustment needed to update the warranty provision account is:

a. Debit $18,000.

b. Credit $18,000.

C. Debit $22,000.

d. Credit $22,000.

e. Debit $14,000.