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What is the journal entry for warranty expense charged against the revenue?
Debit Warranty Expense Credit Warranty Liability
Is warranty expense a current or non-current asset?
An expense is not an asset at all.
Difference between NOPAT and net income?
For companies with no debt and thus no interest expense, NOPAT is equal to net-profit-1. In other words, NOPAT represents the company's operating profit that would accrue to shareholders (after taxes) if the company had no debt.See also nopat
Where is warranty expense stated on the income statement?
There is no clear accounting guidance under US GAAP and as such it is considered to be a policy election that needs to be disclosed within the footnotes and applied consistently. Warranty expense can be included as part of Cost of Sales or Operating Expenses. If you review public company financials you will see a 50/50 split.
Do you need to accrue for unpaid fixed asset?
If you purchased a fixed asset and you didn't pay for it all when you bought it, then you took on a debt liability. This does not accrue. It's there in full until it is paid off. Interest expense is recorded in its own account too. Interest accrues.
Where do you File warranties in bookeeping?
Companies must accrue estimated warranty expenses. The journal entry to accrue the expenses is a debit to warranty expense, and a credit to an accrued warranty liability account. When warranties are paid the debit is to the warranty liability account and the credit is to the cash or bank account.
What is the journal entry for warranty expense charged against the revenue?
Debit Warranty Expense Credit Warranty Liability
When do you record warranty expense?
When its returned within the warranty period.
What is the journal entry for a warranty purchased in financial accounting?
The journal entry to record the purchase of a warranty in financial accounting would be to debit the Warranty Expense or Warranty Cost account and credit the Unearned Warranty Revenue account. This reflects the cost of providing the warranty coverage and defers the recognition of revenue until the warranty services are actually provided.
Is warranty expense a current or non-current asset?
An expense is not an asset at all.
What is the liability for product warranty claims is an example of a liability that?
Product warranty claims liability is an example of a liability that arises from a company's obligation to repair or replace products that are defective or do not meet the terms of the warranty. This liability represents the estimated cost of fulfilling these warranty claims and is recorded on the company's balance sheet as a potential expense that may need to be incurred in the future.
Difference between NOPAT and net income?
For companies with no debt and thus no interest expense, NOPAT is equal to net-profit-1. In other words, NOPAT represents the company's operating profit that would accrue to shareholders (after taxes) if the company had no debt.See also nopat
Where is warranty expense stated on the income statement?
There is no clear accounting guidance under US GAAP and as such it is considered to be a policy election that needs to be disclosed within the footnotes and applied consistently. Warranty expense can be included as part of Cost of Sales or Operating Expenses. If you review public company financials you will see a 50/50 split.
What is the accounting entry for sales return under warranty?
The accounting entry for sales return under warranty is the accrued warranty liability. This entry is written under warranty expense.
What is a covered expense?
A covered expense is an expense paid for usually by a company for their customers or a business for their employee. Covered expenses are a benefit defined by the company.
Do you need to accrue for unpaid fixed asset?
If you purchased a fixed asset and you didn't pay for it all when you bought it, then you took on a debt liability. This does not accrue. It's there in full until it is paid off. Interest expense is recorded in its own account too. Interest accrues.
Does the warranty cover your phone if dropped in water?
That depends on the fine print in the warranty, which varies from company to company.
