 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
What is the correct treatment for warranty expense?
In a manufacuring company, for every unit you sold there is a service coupon worth P300. This refers to repair like tune up and other simple check up for free. Currently, this is part of warranty expense. Under IFRS (accounting pronciples) what should be the correct treatment for this?
|
||||
Check out some similar questions!
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...
3. Bard Company began selling a new computer that carried a 1-year warranty against defects. Based on the manufacturer’s recommendations, Bard projects warranty costs at 3% of dollar sales. Sales for 2006 were $625,000. a. Calculate the estimated warranty expense for 2006. b. Record the...
A company sells computers with a 6-month warranty. In January, the company sold 100,000 computers at $1,750 each, and 1,500 computers were turned in for repairs during the same month. The total repairs amounted to $185,000 costs from the computer parts inventory. It is estimated that 2% of all...
I am really confused with the following problem and do not know where to even start. C Company began operating near the beginning of 2004. During 2004, C Co. sold plasma televisions for $2,000 each, all carrying a two-year warranty against defects. C company's cost for each plasma television was...
View more questions Search
| Question Tools | Search this Question |
Add your answer here.
|
