It is possible for the warranty expense payable account to never zero out.

Question

Quizplus · Accepted Answer

The warranty expense payable account will not zero out if the company continues to incur warranty expenses and provide warranty services beyond the warranty period covered by the original provision. This can happen if the company extends the warranty period, offers lifetime warranties, or experiences higher than expected warranty claims. In such cases, the warranty expense payable account will continue to accrue new expenses, and the balance may increase over time.

It Is Possible for the Warranty Expense Payable Account to Never