After the warranty liability has been established, future costs will be recorded with a debit to Warranty Expense.

Name: After the warranty liability has been established, future costs will be recorded with a debit to Warranty Expense.
Brand: Quizplus
Rating: 4.8 (30 reviews)

Question

Quizplus · Accepted Answer

Future costs related to warranty claims are recorded with a debit to Warranty Liability, not Warranty Expense, as the expense was recognized when the liability was initially established.

After the Warranty Liability Has Been Established, Future Costs Will