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2 July, 08:15

True or False. Expense for a quality-assurance warranty is recorded along with the related liability in the reporting period in which the product under warranty is sold.

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  1. 2 July, 08:20
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    True

    Explanation:

    Whenever a company sells products that may generate warranty expenses, it must estimate the warranty expenses associated with the products sold.

    It must credit a warrant liability account, and as the warrant claims are made, the company must debit a warranty expense account.
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