Change sales and the warranty rate and watch the liability build before any repair happens.
$8,000
$8,000
$8,000
A promise creates an the moment products sell — not when a customer eventually brings one back. The expense is matched against that year's sales, using history to estimate the rate.
When a repair actually happens, it reduces the liability already on the books. It never creates a new expense of its own — the expense was already recorded when the product was sold.