Estimated Warranty Payable is included in the liability section of the balance sheet.

Name: Estimated Warranty Payable is included in the liability section of the balance sheet.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Estimated Warranty Payable represents the amount of warranty claims that a company expects to pay in the future. It is a liability because the company has an obligation to cover these future costs, and therefore it is included in the liability section of the balance sheet.

Estimated Warranty Payable Is Included in the Liability Section of the Balance