Accounting Dictionary - Letter W

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Warranty
is assurance by the seller of goods or services that the goods or services will not have deficiencies in their performance or quality for a stated period of time. Warranties usually provide for repair or replacement. Under accrual basis accounting in the year of sale, an entity should record estimated warranty expense and warranty payable (i.e., liability).
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