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Company A sells products for $100 on April 1 Those products DO NOT come with a warranty but the Company does sell a 6 months
| Company A sells products for $100 on April 1 | |||||||
| Those products DO NOT come with a warranty but the Company does sell | |||||||
| a 6 months warranty separately to the customer for $20. | |||||||
| No warranty claims have been made as of June 30 (3 months) | |||||||
| How should the Company account for its potential warranty | |||||||
| obligation at June 30? |
| ||||||
April 1.
June 30.
| What if the products come with a warranty and we estimate a potential cost for $10 for returned products | |||||||||||
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Modeling And Designing Accounting Systems Using Access To Build A Database
Authors: Laura R. Ingraham, C. Janie Chang
1st Edition
0471450871, 978-0471450870
