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After a few years of its warranty program, ABC Company tested for the accuracy of its warranty liability. On this date, the recorded amount of
After a few years of its warranty program, ABC Company tested for the accuracy of its warranty liability. On this date, the recorded amount of liability exceeds the correct amount of warranty liability. The entry to adjust the warranty liability on this date will involve a debit to
Estimated Warranty Liability
Cash
Retained Earnings
Warranty Expense
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