Warranty Expense Definition Journal Entry Examples
What is the Warranty Expense? This facility is offered to attract and maintain a customer base for various products, especially consumer durables (refrigerators, televisions, etc.). Warranty expense is an actual or expected cost that a business incurs to repair or replace the goods sold. The total amount associated is limited to the warranty period permitted by the business. Once this period has lapsed, businesses no longer incur a warranty liability....