Which of the following is included in the entry to record estimated warranty payable?
A) A credit to Estimated warranty payable
B) A credit to Inventory
C) A credit to Warranty expense
D) A debit to Estimated warranty payable

Question

Quizplus · Accepted Answer

Estimated warranty payable represents the company's estimated liability for future warranty claims. Therefore, the entry would involve a credit to the Estimated warranty payable account to establish the liability. None of the other options listed directly relate to the creation of the estimated warranty payable liability.

Which of the Following Is Included in the Entry to Record