Indicate whether each of the following statements is true or false.
_____ a)The extension of a warranty on goods sold normally represents a legal liability to the seller.
_____ b)The entry to recognize the warranty obligation increases the Warranties Payable account and reduces the Revenue account.
_____ c)The entry to record the repairs provided to customers under the terms of product warranties increase Warranties Expense and decrease the Warranties Payable account.
_____ d)Net income is not affected by the entry to record the completion of warranty work.
_____ e)Total assets are not affected by the end-of-period entry to record the warranty obligation.

Question

Quizplus · Accepted Answer

The Answer of Indicate whether each of the following statements is true or false.
_____ a)The extension of a warranty on goods sold normally represents a legal liability to the seller.
_____ b)The entry to recognize the warranty obligation increases the Warranties Payable account and reduces the Revenue account.
_____ c)The entry to record the repairs provided to customers under the terms of product warranties increase Warranties Expense and decrease the Warranties Payable account.
_____ d)Net income is not affected by the entry to record the completion of warranty work.
_____ e)Total assets are not affected by the end-of-period entry to record the warranty obligation.

Indicate Whether Each of the Following Statements Is True or False