Actual warranty costs incurred rarely equal the estimated expense, so warranty expense may have to be...

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Actual warranty costs incurred rarely equal the estimated expense, so warranty expense may have to be adjusted retroactively in order for profits to be reported correctly. O'at some point the company may have to charge customers for warranty work. O the Warranty Liability account must be reviewed and adjusted every year. O it is more appropriate to record the expense when the actual costs are incurred. Actual warranty costs incurred rarely equal the estimated expense, so warranty expense may have to be adjusted retroactively in order for profits to be reported correctly. O'at some point the company may have to charge customers for warranty work. O the Warranty Liability account must be reviewed and adjusted every year. O it is more appropriate to record the expense when the actual costs are incurred.