Why do you think that warranty expenses are accrued


Companies usually prepare an adjusting journal entry to accrue warranty expenses. When this is done the warranty expense is recorded in advance, often well in advance, of any warranty services and costs that will be provided. From an accounting theory perspective, why do you think that warranty expenses are accrued in this manner?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Why do you think that warranty expenses are accrued
Reference No:- TGS0692289

Expected delivery within 24 Hours