In the current year, Hanna Company reported quality-assurance warranty expense of $ 189,000 and the warranty liability account increased by $ 27,000. What were warranty expenditures during the year?

warranty expenditures during the year = $162,000

Explanation:

Warranty expenditure during the year = quality assurance warranty expenses - increase in the warrant liability account

= 189,000 - 27,000

= $162,000.

This expenditure reported in Hanna's income statement for the current year.

The adjusting journal entry is debit to the warranty expenses account and credit to the estimated warranty liability account.