Warranty expense is debited in the period that:
A)the product is repaired.
B)the product is sold.
C)the cash is collected from the customer.
D)either the product is sold or the cash is collected.

Question

Quizplus · Accepted Answer

Warranty expense is recognized in the same period that the product is sold, following the matching principle of accounting, which states that expenses should be matched with the revenues they help to generate.

Warranty Expense Is Debited in the Period That