The entry to record estimated service expenses related to sales would include a

Question

Quizplus · Accepted Answer

The entry to record estimated service expenses related to sales would involve an increase in the estimated liability for service. Therefore, the correct entry is a debit to Estimated Liability for Service and a credit to the corresponding expense account. Option A is incorrect because Sales Revenue is not impacted by the entry. Option B is incorrect because expenses are debited and not credited. Option C is incorrect because it would decrease the estimated liability rather than increase it.

The Entry to Record Estimated Service Expenses Related to Sales