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:
A xxxxxxx warranty xxxxxxxxx and xxxxxxxx expense xxxxxx be xxxxxxxx at xxx time xxx product xx sold xx it xx probable xxxx customers xxxx be xxxxxx claims xxxxx the xxxxxxxx and xxx amount xxx be xxxxxxxxx These xxx conditions xxx part xx the xxxx s xxxxxxxxx of xxxxxxxxx Accounting xxxxxxxxx No xxxxxxxxxx for xxxxxxxxxxxxx Since xxx companies xxxxxx similar xxxxxxx lines xxxxxxx for x warranty xxxxx and xx keeping x conservative xxxxxxxx I xxxxxxx it xxxx be xxxxxxx to xxxxxxx for x warranty xxxxxxx contingency xx When xxx possibility xx occurrence xx a xxxxxxxx expenditure xxxxx can xx estimated xx per xxx guidance xx FASB xxx accountant xxxxxx account xxx the xxxxxxxxx and xxxxxxxxxxx that xxx arise xx the xxxxxx and xxx same xxxxxx be xxxxxxxxx in xxx period xxxx the xxxx is xxxx This xx one xx the xxxxxxxx of xxx accurate xxxxxxxxx reporting xxxx correct xxxxxx figures xxxx in xxx future xxx warranty xxxxxxxxxxx is xxxxxxx out xxx the xxxxx in xxx past xxxx the xxxxxxxxx which xxx created xx the xxxx of xxxx should xx reduced xxxx it xxxxx be xxxxxxx to xxxxxxx for xxx expenditure xxx liability xxxx may xxxxx in xxxxxx because xx obligations xxxxxxx to xxxxxxxxx at xxx time xx Sales xx order xx represent xxx true xxxxxxx of xxx financial xxxxxxxxxx we xxxx account xxx the xxxxxxxx expense xxx liability xx a xxxxxxx in xxx period xx sales xxxxxxxxxx Tools x d xxxxxxxxx July xxxx http xxx accountingtools xxx warranty- xxxxxxxxxx Everkamp x n x Accounting xxxxx Retrieved xxxx from xxxx blog xxxxxxxxxxxxxxx com xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxMore Articles From Accounting
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