You are the controller of a large Auto dealership that offers customers a three year, 60,000 km, bumper to bumper warranty at no extra cost, or customers may purchase an extended warranty that provided bumper to bumper coverage for 5 years or 100,000 km. In reviewing the year-end financial statements the General Manager notices that you have accounted for these two warranties differently. Provide the GM with an explanation of these two types of warranties and how the warranties are accounted for.

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The Answer of You are the controller of a large Auto dealership that offers customers a three year, 60,000 km, bumper to bumper warranty at no extra cost, or customers may purchase an extended warranty that provided bumper to bumper coverage for 5 years or 100,000 km. In reviewing the year-end financial statements the General Manager notices that you have accounted for these two warranties differently. Provide the GM with an explanation of these two types of warranties and how the warranties are accounted for.

You Are the Controller of a Large Auto Dealership That