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Remember that the company records an increase in the warranty liability every time they make another sale, so when they record the estimated warranty expense

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Remember that the company records an increase in the warranty liability every time they make another sale, so when they record the estimated warranty expense and liability of $69,000, that increases the warranty liability account by 69,000 . And the company records a decrease in the warranty liability every time they spend money on warranty repairs for their customers. In other words, Beginning Bal. Warranty Liability 30,000 Minus: Warranty Repairs Made (27,000) Plus: Estimated Warranty Expense in the Current period +69.000 - Ending Balance Warranty Liability

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