Bookkeeping – Estimating Warranties (Lesson 86)

Estimating Warranties

Warranties are assurances to customers that the product sold or service rendered will perform as stated or contracted.  Often products or services are defective and therefore require replacement or repair.  To properly match the cost of warranty work against the revenue generated an estimate of costs is made and recorded to cost of sales. 

This content is for Bronze, Silver, One-Time and Contractor’s Diagnostic members only.
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