Plan Footnote Warranty For Free
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the way its sos easy to add documents, and it stores them to go back when you need them
What do you dislike?
nothing, it's easy to use, intellectually smart and fun
Recommendations to others considering the product:
it's great, easy to use, life saver!!
What problems are you solving with the product? What benefits have you realized?
I fill out a lot of license applications in my field so this has been a god send.
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What is a contingent liability and what are some examples?
Description: A contingent liability is a liability or a potential loss that may occur in the future depending on the outcome of a specific event. Potential lawsuits, product warranties, and pending investigation are some examples of contingent liability.
What account is a warranty?
warranty liability definition. 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.
What is a warranty expense?
Definition: Warranty expense is the cost associated with a vendor or manufacturer's commitment to repair or replace a product, should it not perform as intended during a specified period of time. In other words, it's the cost of repairing or replacing defective products after they have been sold to customers.
What type of expense is warranty?
Warranty expense is the cost that a business expects to or has already incurred for the repair or replacement of goods that it has sold. The total amount of warranty expense is limited by the warranty period that a business typically allows.
How is warranty calculated?
Divide the amount of your actual warranty claims in the most recent year by your total sales in the same year to calculate your warranty claims as a percentage of sales. For example, if you had $1,600 in warranty claims and $80,000 in sales, divide $1,600 by $80,000.
Is warranty an operating expense?
The costs associated with a manufacturer's product warranty are part of its selling expenses and therefore part of its SGA expenses. ... The accounting entry will debit Warranty Expense and will credit Warranty Liability.
What is a warranty reserve?
Warranty Reserve means the amount set forth as warranty reserve on the Adjusted Balance Sheet as a reserve for Warranty Claims arising from goods or services of the Company sold and delivered on or prior to the date of the Adjusted Balance Sheet.
Is a warranty an asset?
At the end of any financial year the amount of the extended warranty that will be used in the next 12 months is classified as a current asset and the amount to be used after 12 months is classified as a long term asset.
Can a warranty be capitalized?
Warranty costs and service agreement costs are not capitalized if the warranty costs or service agreement costs are listed as separate line items on the purchase orders or invoices. Otherwise, warranty costs and service agreement costs are capitalized with the value of the asset.
Is a warranty an intangible asset?
An intangible asset is an asset that lacks physical substance; in contrast to physical assets, such as machinery and buildings, and financial assets such as government securities. An intangible asset is usually very hard to evaluate. Examples are patents, copyright, franchises, goodwill, trademarks, and trade names.
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