All of the following statements related to recording warranty expense are true except:
A. Recording estimated warranty expense requires a debit to Warranty Expense.
B. Warranty expense should be recorded in the period when the warranty service is performed.
C. Warranty costs are probable and the amount can be estimated.
D. Estimated warranty expense is recorded when revenue from the sale of the product or service is reported.
E. The seller reports a warranty obligation as a liability.
Answer: B
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