Estimates

With the accounting discipline, estimates refer to reasonable calculations for the purpose of determining accounting profits adjusted for depreciation, amortization, warranties, and unusual or infrequent events.

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.
Log In Register

Bookkeeping – Estimating Depreciation (Lesson 83)

Estimating Depreciation

Depreciation is a form of an allowance for the wear and tear (exhaustion) of property used in a trade or a commercial enterprise.   The idea is to match as well as possible the actual use (utility) of the asset  to its change or reduction in fair market value due to that utility.

This content is for Bronze, Silver, One-Time and Contractor's Diagnostic members only.
Log In Register

Bookkeeping – Estimates (Lesson 82)

Estimates

There are many transactions in accounting requiring the accountant to use estimates for the respective debits and credits.  The following five lessons cover how estimating is performed with depreciation, payroll benefits, bad debts, warranties and extraordinary items.  This lesson explains why estimating is needed and used in business.

This content is for Bronze, Silver, One-Time and Contractor's Diagnostic members only.
Log In Register
Follow by Email
Facebook
Google+
https://businessecon.org/tag/estimates">
Twitter
LinkedIn