How do I record warranty premiums in an Warranty Administration Company? I think that it should be recorded as a liability to the warranty insurance captive company. Also that any cash receipts for the warranty administration should be recorded as income. Is this correct?

What does a warranty administration company do?

These should NOT be recorded as a liability.
This an example of CONTINGENT LIABILITIES.
They should be recorded as NOTES to the
Balance Sheet.
Cash Receipts crystallised should be treated as Income.