Which statement is false? QuickBooks does not record adjusting journal entries in a manner similar to that of a manual accounting system. In QuickBooks each activity is recorded in a different window depending on the nature of the activity. QuickBooks does not follow the format of the special journals for daily transactions. Behind the scenes, QuickBooks records the activity in general journal format, as seen in the Journal report.

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?