Estimated warranty payable would be included in the operating expense section of the income statement.

Name: Estimated warranty payable would be included in the operating expense section of the income statement.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Estimated warranty payable is recorded as a liability on the balance sheet, not as an operating expense on the income statement. However, the expense related to warranty costs is recognized in the income statement under operating expenses.

Estimated Warranty Payable Would Be Included in the Operating Expense