Liz Company, an accrual basis retailer with a 12/31 year-end, provided the following information to you regarding the companys warranty accounting for January 2019. Liz offers its customers a 90-day warranty covering manufacturer defects. During January 2019 Liz paid $1,025 to repair actual customer warranty claims; additionally, Liz estimated $2,800 as the value for all future warranty claims resulting from the units of inventory sold during January 2019.

True or False: Liz Warranty Liability account will decrease by$1,775 during the month of January.