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13 results for "warranties"

A promise to repair, replace, refund, etc. a product during a specified period. The company making the promise has a contingent liability and a warranty expense that should be recorded at the time the product is sold.

will not be recorded and it will not have to be disclosed in the notes to the financial statements. An example is a nuisance lawsuit where there is no similar case that was ever successful. Example of Recording a...

The expense associated with a commitment to repair or replace a product for a specified period of time. The expense should be reported on the income statement at the time that the sale of the product is reported in order...

A liability account that reports the estimated amount that a company will have to spend to repair or replace a product during its warranty period. The liability amount is recorded at the time of the sale. (It is also the...

What is boilerplate? Author: Harold Averkamp, CPA, MBA In business, boilerplate is a term to describe the standard wording that is contained in warranties and other documents. Generally, the information that is...

A potential liability dependent upon some future event occurring or not occurring. For example, a company is named as a defendant in a $1 million lawsuit. Does that mean the company automatically has a liability of $1...

, a company’s liability for warranties on its products and its allowance for uncollectible accounts receivable will need to be estimates. Providing an estimated amount is better than ignoring reality and reporting a...

of merchandise, sales of extended warranties, and repair revenues The fees earned by a law firm for legal services provided to clients The amounts earned by publishers of magazines, newspapers, and electronic...

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