Question

debit Product Warranty Expense; credit Cash b. debit Product Warranty Expense; credit Product Warranty Payable c. debit Product Warranty Payable; credit Cash d. debit Product Warranty Payable; credit Product Warranty Expense

Answer 1

Answer:

b. debit Product Warranty Expense; credit Product Warranty Payable

Explanation:

The journal entry for recording the estimated product warranty liability is shown below;

Product Warranty expense Dr XXXXX

          To Product warranty payable XXXXX

(being the estimated product warranty liability is recorded)\

For recording this we debited the product warranty expense as it increased the expenses and credited the product warranty payable as it also increased the liabilities