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Ounting for warranty expense and estimated warranty payables
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Accounting for warranty expense and estimated warranty payable: Treskter USA guarantees automobiles against defects for (5) years or (55,000) miles, whichever comes first. Suppose Treskter USA can expect warranty cost during the (5) years period to add up to (6%) of the sales, Assume that...
Warranty expense & warranty liability
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I need help with the following question. Any pointers is greatly appreciated. Warranty expense. Woodmier Lawn Products introduced a new line of Commercial sprinklers in 2002 that carry a one-year warranty against Manufacturer’s defects. Because this was the first product for which the...
Recording Warranty Premiums in a Warranty Adm. Company
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How do I record warranty premiums in an Warranty Administration Company? I think that it should be recorded as a liability to the warranty insurance captive company. Also that any cash receipts for the warranty administration should be recorded as income. Is this correct?
Product Warranty question?
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Hi I bought a treadmill from a company in NJ by the internet I live in Michigan. I have warranty on the treadmill, for 1 year they will cover 100% for labor and service after that they will only cover service for the motor but not labor. The warranty has one more month left on it for the 100%... View more questions Search
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