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an extended warranty typically results in the seller: multiple choice accruing an expense for anticipated warranty costs at the time the warranty is sold. recognizing revenue over the life of the extended warranty. refunding warranty payments upon expiration of the warranty. estimating the contingent liability associated with the warranty at the time the warranty is sold.

Answer :

The correct option is (a).

a. Accruing an expense for anticipated warranty costs at the time the warrantied product is sold.

What is a warranty?

A warranty is a promise that is not a requirement of the contract or an indefinite term. It is a term that is "not going to the root of the contract" and that only entitles the innocent party to damages in the event that it is violated, meaning that the warranty is false or the defaulting party does not perform the contract in accordance with the warranty's terms. An assurance is not a warranty. It's only a promise. If it is violated, it may be put into effect if damages are granted as a judicial remedy.A contract term is a warranty. A product warranty may apply to a product in a way that a manufacturer offers a warranty to a consumer with whom the manufacturer has no direct contractual relationship, depending on the conditions of the contract.

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