If I record a warranty expense in Income statement and as a liability in balance sheet in year 0 and the warranty is for 2 years. By the end of the year 2 the warranty is unclaimed. How do I reverse the entry of warranty expense in the balance sheet?
Debit the balance sheet account (Accrued Warranty Expense or whatever) and credit some income statement account (Unclaimed Warranty Expense or some such).
@S2000magician as usual,thanks a lot!
As usual, my pleasure.