Question 7. Answer if the following are True or False ?

a) A company must usually estimate the amount of the product warranty expense.

b) Most contingent liabilities are recorded in the accounts at the best estimate of their amounts.

c) The sale of goods to a customer who charged them using a credit card usually leads to the recording of an expense on the seller's books.

d) At the end of an accounting period, a company that has a noninterest-bearing note payable outstanding will need to make an adjusting entry debiting Interest Expense and crediting Interest Payable.