All of the following statements related to recording warranty expense are true except:
A)Recording estimated warranty expense requires a debit to Warranty Expense.
B)Warranty expense should be recorded in the period when the warranty service is performed.
C)Estimated warranty expense is recorded when revenue from the sale of the product or service is reported.
D)The seller reports a warranty obligation as a liability.
E)Warranty costs are probable and the amount can be estimated.

Question

Quizplus · Accepted Answer

Warranty expense should be recorded in the period when the product is sold, not when the warranty service is performed.

All of the Following Statements Related to Recording Warranty Expense