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Lowland Appliances Store offers customers purchasing its appliances separately priced (extended) warranties. Lowland services these extended warranties. Its customers can receive no refund for not using these warranties and of course, Lowland must honour these contracts- regardless of any future costing in doing so. It also "tracks" the profits and losses these types of warranties generate by appliance category- in order to help maintain a competitive price and costing structures. How should Lowland recognize the revenues and expenses of such extended warranties?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91057086

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