You are a CPA working for GE. You are responsible for managing the manufacturer?s warranties and the point of sal
You are a CPA working for GE. You are responsible for managing the manufacturer’s warranties and the point of sale, add-on-warranties that customers purchase:
- Explain the accounting for each warranty type, along with the impact on the financial statements.
- Explain why the reporting of each differs.
- Include each type of warranty's redemption and expiration process and their effect on the income statement and balance sheet.
- Differentiate between a determinable current liability and a contingent liability. Please describe the conditions that should be present for recording a contingent liability.
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