Question.3015 - Instructions George is the accounting and finance manager for a manufacturer. At year- end, he must determine how to account for the company's contingencies. His manager, Mary Pitt, objects to George's proposal to recognize an expense and a liability for warranty service on units of a new product introduced in the fourth quarter. Pitt comments, "There's no way we can estimate this warranty cost. We don't owe anyone anything until a product fails and it is returned. Let's report an expense if and when we do any warranty work." Required: Prepare a one-page memorandum in Word for George to send to Pitt defending his proposal, and attach. You will be graded on how well you address the questions. Addressing the questions involves identifying relevant facts, applying the chapter concepts,, and answering each question completely. Proper APA formatting is expected and required (cited sources, reference page, etc.). Supplement and synthesize your analysis with outsides scholarly sources. For assistance with APA citations, please visit the following links: The American Psychological Association Website: http://www.apastyle.org/ The APA site has numerous links (see “most popular”), but you may want to view the tutorial if you are completely new to APA: http://www.apastyle.org/learn/tutorials/basics-tutorial.aspx Note: This assignment will be submitted for plagiarism detection. You may not copy and paste any part of your submission, (not even from the text book) unless it is quoted and cited. Your submission must return less than 20% similarity index in order to be graded.
Answer Below:
ldquo x product xxxxxxxx liability xxx warranty xxxxxxx should xx recorded xx the xxxx the xxxxxxx is xxxx if xx is xxxxxxxx that xxxxxxxxx will xx making xxxxxx under xxx warranty xxx the xxxxxx can xx estimated xxxxx two xxxxxxxxxx are xxxx of xxx FASB xxxxx s xxxxxxxxx of xxxxxxxxx Accounting xxxxxxxxx No xxxxxxxxxx for xxxxxxxxxxxxx rdquo xxxxx the xxxxxxxxx having xxxxxxx product xxxxx account xxx a xxxxxxxx costs xxx by xxxxxxx a xxxxxxxxxxxx approach x believe xx will xx prudent xx account xxx a xxxxxxxx expense xxxxxxxxxxx of xxxx the xxxxxxxxxxx of xxxxxxxxxx of x warranty xxxxxxxxxxx which xxx be xxxxxxxxx as xxx the xxxxxxxx of xxxx the xxxxxxxxxx should xxxxxxx for xxx liability xxx expenditure xxxx may xxxxx in xxx future xxx the xxxx should xx accounted xx the xxxxxx when xxx sale xx made xxxx is xxx of xxx measures xx the xxxxxxxx financial xxxxxxxxx with xxxxxxx profit xxxxxxx When xx the xxxxxx any xxxxxxxx expenditure xx carried xxx for xxx sales xx the xxxx then xxx liability xxxxx was xxxxxxx at xxx time xx sale xxxxxx be xxxxxxx Thus xx would xx prudent xx account xxx the xxxxxxxxxxx and xxxxxxxxx that xxx arise xx future xxxxxxx of xxxxxxxxxxx offered xx customers xx the xxxx of xxxxx In xxxxx to xxxxxxxxx the xxxx picture xx the xxxxxxxxx statements xx will xxxxxxx for xxx warranty xxxxxxx and xxxxxxxxx as x expense xx the xxxxxx of xxxxx Accounting xxxxx n x Retrieved xxxx from xxxx www xxxxxxxxxxxxxxx com xxxxxxxxx accounting xxxxxxxx H x d xxxxxxxxxx Coach xxxxxxxxx July xxxx http xxxx accountingcoach xxx warranty-liability-warranty-expenseMore Articles From Accounting
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