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Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535 Exercise 49
Accrued product warranty
General Motors Company (GM) disclosed estimated product warranty payable for comparative years as follows:
Assume that GM's sales were $155,929 million in the current year and that the total paid on warranty claims during the current year was $4,326 million.
A. Why are short- and long-term estimated warranty liabilities separately disclosed?
B. Provide the journal entry for the current year product warranty expense.
C. What two conditions must be met in order for a product warranty liability to be reported in the financial statements?
General Motors Company (GM) disclosed estimated product warranty payable for comparative years as follows:
Assume that GM's sales were $155,929 million in the current year and that the total paid on warranty claims during the current year was $4,326 million.
A. Why are short- and long-term estimated warranty liabilities separately disclosed?
B. Provide the journal entry for the current year product warranty expense.
C. What two conditions must be met in order for a product warranty liability to be reported in the financial statements?
Explanation
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Product policy:
When a business promise...
Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
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