Repair costs incurred in honoring warranty contracts should be debited to Warranty Liability.

Name: Repair costs incurred in honoring warranty contracts should be debited to Warranty Liability.
Brand: Quizplus
Rating: 4.7 (43 reviews)

Question

Quizplus · Accepted Answer

Repair costs incurred in honoring warranty contracts are a liability, and should be debited to the Warranty Liability account. This account represents the company's obligation to cover the costs of repairs or replacements under warranty agreements.

Repair Costs Incurred in Honoring Warranty Contracts Should Be Debited