[hell0]

When the warranty liability account increases, should this not be added to the current beginning balance as oppose to subtracting? My understanding is that the warranty liability account is reduced when warranty service is performed. Please clarify.

Example:
Warranty Cost = cr $6,000
Warranty Liability = db $6,000
Additional Warranty Liability $200.00
Total Warranty Liability =$6,200
Total expenditure is $6,200