Question 5 1 pts A company sells motorcycles with a five-year warranty. They have established a warranty liability for the estimated warranty that they expect will be incurred on the motorcycles they have sold. Subsequently, they find out that there was a flaw in the tires and they incur SIGNIFICANTLY more warranty on each motorcycle than they estimated. How should this be accounted for? The company will adjust the warranty liability when they realize it was misstated and "true it up" as soon as they realize there is an issue, The company will go back and restate prior periods of financial statement to restate the warranty expense to the corrected, higher amount The company will adjust the warranty liability when they realize it was misstated and true it up" over several years starting when they realize there is an issue