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    MrGOAT23's Avatar
    MrGOAT23 Posts: 1, Reputation: 1
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    #1

    Nov 26, 2010, 09:15 PM
    When does Wright Industries record warranty expense?
    a. At the time the product is paid for by the customer.
    b. When the product is repaired or replaced by Wright.
    c. In the period when the product is sold.
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #2

    Nov 30, 2010, 07:48 PM

    Per FASB No. 5, a warranty expense is recorded in the period when the product is sold if it is probable and can be estimated. This is done to match revenues and expenses.
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