Which of the Following Is Included in the Entry to Record

question 26

Multiple Choice

Which of the following is included in the entry to record warranty expense?

• A)A credit to Inventory
• B)A credit to Warranty expense
• C)A debit to Warranty expense
• D)A debit to Estimated warranty payable

---

Definitions:

Customer Refunds Payable

A liability account for estimated refunds and allowances that will be paid or granted to customers in the future.

Estimated Returns Inventory

A current asset account for the estimated amount of merchandise that will be returned by customers.

Customer Refunds Payable

Liabilities owed to customers for products or services that were sold but later returned or found unacceptable.

Perpetual Inventory

An inventory tracking system that records the sale or purchase of inventory immediately through the use of computerized systems.