a. A debit to a revenue account and a credit to a liability account. b. A debit

a. A debit to a revenue account and a credit to a liability account. b. A debit to a revenue account and a credit to an asset account. c. A debit to an asset account and a credit to a revenue account. d. A debit to a liability account and a credit to a revenue account.
Volt Electronics sells equipment that includes a three-year warranty. Repairs under the warranty are performed by an independent service company under a contract
with Volt. Based on prior experience warranty costs are estimated to be $25 per item sold. Volt should recognize these warranty costs: a. When the equipment is sold. b. When the repairs are performed. c. When payments are made to the service firm. d. Evenly over the life of the warranty.