ch8_summary - Click to edit Master subtitle style Current &...

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Click to edit Master subtitle style Chapter 8 Summary Long Term Liabilities
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Current Liabilities Obligations of an Organization that are due to be paid within one year or one accounting period (whichever is greater) Recorded at: $ value of obligation Two Types: $ value known $ value must be estimated
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$ Value Known Accounts Payable Amounts owed from purchases made on account Other Payables From Accrual process Salary Expense Interest Expense
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Note Payable Obligation we owe lender Record 3 things: Initial Obligation Periodic Interest Final Payoff
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Warranty Payable $ Value unknown Matching says…. Estimate Warranty Expense based on % of expected warranty claims from sales Debit Warranty Expense Credit Warranty Payable As the obligations for the warranties are fulfilled we reduce the liability l Debit Warranty Payable l Credit (it depends) l Cash (if we are giving customers back their $) l Inventory (if we are giving customers replacement products(
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This note was uploaded on 09/16/2011 for the course ACG 2021 taught by Professor Hornik during the Spring '08 term at University of Central Florida.

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ch8_summary - Click to edit Master subtitle style Current &...

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