Company A, an accrual basis retailer with a 12/31 year-end, provided the following information to you regarding the companys warranty accounting for January 2019. Company A offers its customers a 90-day warranty covering manufacturer defects. During January 2019 Company A paid $2000 to repair actual customer warranty claims; additionally, Company A estimated $1000 as the value for all future warranty claims resulting from the units of inventory sold during January 2019.

T or F: As part of the warranty accounting, Company A will expense $2000 during the month of January.