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 the Warranties Expense 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

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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 the Warranties Expense 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