The estimated warranty payable account will be zeroed out at the end of every fiscal year.

Name: The estimated warranty payable account will be zeroed out at the end of every fiscal year.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The estimated warranty payable account is a liability account that reflects the company's obligation to repair or replace products under warranty. It is not zeroed out at the end of the fiscal year but adjusted based on new estimates and actual warranty claims.

The Estimated Warranty Payable Account Will Be Zeroed Out at the End