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1 / 237 |
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Under the accrual accounting method, estimated warranty costs are charged to operating expenses in the year of sales, and a corresponding liability is established. This liability is reduced when the actual warranty charges are incurred. The notes on the financial statements reveal that in 2004 Maytag estimated $132,841 in warranty liability and made $121,162 in warranty payments...
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Under the accrual accounting method, estimated warranty costs are charged to operating expenses in the year of sales, and a corresponding liability is established. This liability is reduced when the actual warranty charges are incurred. The notes on the financial statements reveal that in 2004 Maytag estimated $132,841 in warranty liability and made $121,162 in warranty payments...
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