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:

Multiple Choice

When the equipment is sold.

Evenly over the life of the warranty.

When the repairs are performed.

When pavments are made to the combanv providina the service.