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The site is very confusing for a first timer and did not explain about using Google Chrome if you need to print any Documents, But Kirsten customer support was very good in helping and very patient to find a solution to enable me to print the Documents I need.. Roger Cox
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Collate Identification Warranty: full-featured PDF editor

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Accrue the warranty expense with a debit to the warranty expense account and a credit to the warranty liability account. As actual warranty claims are received, debit the warranty liability account and credit the inventory account for the cost of the replacement parts and products sent to customers.
Identify the customer contract(s) Identify the performance obligation(s) in the contract. Determine the transaction price. Allocate the transaction price to the performance obligation(s) in the contract.
In accounting terms, the warranty is a liability and is carried on the balance sheet as warranties payable. For example, suppose a manufacturer of washing machines estimates that 5 percent of sales revenue will be needed to pay for repairs under warranty in the coming year.
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.
Generally, assurance-type warranties are not considered a separate performance obligation. These types of warranties do not provide an additional good or service to the customer, because the selling entity has effectively provided a guarantee of quality and that the product will meet its agreed-upon specifications.
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.
If you estimate that 1 percent of revenues will pay for warranty costs, multiply $100,000 by 0.01 to find the warranty liability of $1,000. At the start of the accounting period, record the warranty liability. In this example, debit the warranty expense account and credit the warranty liability account for $1,000.
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.

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